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:

Direct materials				$	82,000
Direct labor				$	41,500
Variable manufacturing overhead	$	20,200
Fixed manufacturing overhead		31,900
Total manufacturing overhead				$	52,100
Variable selling expense	$	14,600
Fixed selling expense		23,200
Total selling expense				$	37,800
Variable administrative expense	$	5,300
Fixed administrative expense		27,600
Total administrative expense				$	32,900

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 82000 41500 52100 175600 Requirement: 1b Total selling expense Total administrative expense Total period cost 37800 32900 70700 82000 Requirement: 2a Direct materials Direct labor Total direct manufacturing cost 41500 123500 Requirement: 2b Variable manufacturing overhead Fixed manufacturing overhead Total indirect manufacturing cost 20200 31900 52100

Requirement: 3a Direct materials Direct labor Total manufacturing overhead Total manufacturing cost 82000 41500 52100 175600 Requirement: 3b Total selling expense Total administrative expense Total nonmanufacturing cost 37800 32900 70700 Requirement: 30 Direct labor Total manufacturing overhead Total Conversion cost 415001 52100 93600 Direct materials Direct labor Total prime cost 82000 41500 123500

Requirement: 4a Direct materials Direct labor Variable manufacturing overhead Total variable manufacturing cost 82000 41500 20200 143700 Requirement: 4b Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Total fixed cost 31900 23200 27600 82700 Requirement: 4 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) 82000 41500 20200 14600 5300 163600 1000 164

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) 82000 41500 20200 143700 1000 144