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: $ 88,000 $ 44,500 $ 22,600 33,700 $ 56,300 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 $ 15,800 25,600 $ 41,400 $ 5,900 28,800 $ 34,700

Answer 1

1. Total manufacturing cost is computed as :

Direct materials	$          88,000
Direct labor	$          44,500
Total manufacturing overhead	$          56,300
Total manufacturing cost	$        188,800

2. Total nonmanufacturing cost is computed as :

Total selling expenses	$          41,400
Total administrative expense	$          34,700
Total nonmanufacturing cost	$          76,100

3. Total conversion cost is computed as:

Direct labor	$          44,500
Total manufacturing overhead	$          56,300
Total conversion cost	$        100,800

Total prime cost is computed as:

Direct materials	$          88,000
Direct labor	$          44,500
Total prime cost	$        132,500