Question

Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month:

Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month: $ 86,000 $ 43,500 $ 21,800 33,100 $ 54,900 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing overhead Variable selling expense Fixed selling expense Total selling expense Variable administrative expense Fixed administrative expense Total administrative expense $ 15,400 24,800 $ 40,200 $ 5,700 28,400 $ 34,100 Required: 1. With respect to cost classifications for preparing financial statements: a. What is the total product cost? b. What is the total period cost? 2. With respect to cost classifications for assigning costs to cost objects: a. What is total direct manufacturing cost? b. What is the total indirect manufacturing cost? 3. With respect to cost classifications for manufacturers: a. What is the total manufacturing cost? b. What is the total nonmanufacturing cost? c. What is the total conversion cost and prime cost? 4. With respect to cost classifications for predicting cost behavior: a. What is the total variable manufacturing cost? b. What is the total fixed cost for the company as a whole? c. What is the variable cost per unit produced and sold? 5. With respect to cost classifications for decision making: a. If Dozier had produced 1,001 units instead of 1,000 units, how much incremental manufacturing cost would it have incurred to make the additional unit? Complete this question by entering your answers in the tabs below.

Answer 1

1a	Total Product Cost
	Direct Material Cost	86000
	Direct Labour cost	43500
	Manufacturing Overheads	54900
	Selling expenses	40200
	Administrative expenses	34100
	Total	258700
1b	Total Period Cost
	Total Product Cost per month	258700
	No of months	12
	Total Period Cost	3104400
2a	Total Direct Manufacturing cost
	Direct Material Cost	86000
	Direct Labour cost	43500
	Variable Manufacturing Overheads	21800
	total	151300
2b	Total In-Direct Manufacturing cost
	Fixed Manufacturing Overheads	33100
	Total	33100
3a	Total Manufacturing cost
	Direct Material Cost	86000
	Direct Labour cost	43500
	Manufacturing Overheads	54900
	total	184400
3b	Total Non Manufacturing cost
	Selling expenses	40200
	Administrative expenses	34100
	Total	74300
3c	Total Conversion cost
	Direct Labour cost	43500
	Manufacturing Overheads	54900
	Total	98400
	Total Prime cost
	Direct Material Cost	86000
	Direct Labour cost	43500
	Total	129500
4a	Total Variable Manufacturing cost
	Direct Material Cost	86000
	Direct Labour cost	43500
	Variable Manufacturing Overheads	21800
	total	151300
4b	Total Fixed cost
	Fixed Manufacturing Overheads	33100
	Fixed Selling expenses	24800
	Fixed Administrative expenses	28400
	total	86300
4c	Total Variable cost per unit
	Direct Material Cost	86000
	Direct Labour cost	43500
	Variable Manufacturing Overheads	21800
	Variable Selling expenses	15400
	Variable Administrative expenses	5700
	Total Variable cost	172400
	Total No of units	1000
	Variable cost per unit	172
5a	Variable cost per unit	172
	Total units produded	1001
	Total Variable cost for all units	172572
	Total Fixed cost	86300
	Therfore, Total cost for 1001 units	258872
	Total cost of 1000 units	258700
	Therefore, Incremental cost	172