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: $ 70,000 $ 35,500 $ 15,400 28,300 $ 43,700 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 $ 12,200 18,400 $ 30,600 $ 4,100 25, 200 $ 29,300 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?

Answer 1

Requirement: 1a Direct materials Direct labor Total manufacturing overhead Total product cost 70000) 35500 43700 149200 Requirement: 1b Total selling expense Total administrative expense Total period cost 30600 29300 59900 Requirement: 2a Direct materials Direct labor Total direct manufacturing cost 70000 35500 105500 Requirement: 2b Variable manufacturing overhead Fixed manufacturing overhead Total indirect manufacturing cost 15400 283001 43700

Requirement: 3a Direct materials Direct labor Total manufacturing overhead Total manufacturing cost 70000 35500 43700 149200 Requirement: 3b Total selling expense Total administrative expense Total nonmanufacturing cost 30600 29300 59900 Requirement: 30 Direct labor Total manufacturing overhead Total Conversion cost 35500 43700 79200 Direct materials Direct labor Total prime cost 70000 35500 105500

Requirement: 4a Direct materials Direct labor Variable manufacturing overhead Total variable manufacturing cost 70000 35500 15400 120900 Requirement: 4b Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Total fixed cost 28300 18400 25200 71900 Requirement: 4c Direct materials Direct labor Total variable manufacturing overhead Variable selling expenses Variable administrative expense Total variable cost (a) Number of units produced and sold (b) Variable cost per unit produced and sold (a)/(b) 70000 35500 15400 122001 4100 137200 1000 137

Requirement: 5a Direct materials Direct labor Variable manufacturing overhead Total incremental cost (a) Number of units produced and sold (b) Incremental cost per unit produced (a)/(b) 70000 35500 15400 120900 1000 121