Question

View previous att Problem 1-24 Different Cost Classifications for Different Purposes (LO1-1, LO1-2, LO1-3, LO1-4, LO1-5] Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month: $ 69,000 $ 35,000 $ 15,000 28,000 $ 43,000 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 $ 12,000 18,000 $ 30,000 4,000 25,000 $ 29, eee Required: 1. With respect to cost classifications for preparing financial statements:

Answer 1

1a. Total Product cost

Particulars	$
Direct materials	69,000
Direct labor	35,000
Variable manufacturing cost	15,000
Fixed Manufacturing cost	28,000
Total Product cost	147,000

1b. Total Period cost

Particulars	$
Variable selling cost	12,000
Fixed selling cost	18,000
Variable administrative expense	4,000
Fixed administrative expense	25,000
Total Product cost	59,000

2a. Total direct manufacturing cost

Particulars	$
Direct materials	69,000
Direct labor	35,000
Total direct manufacturing cost	104,000

2b. Total Indirect manufacturing cost

Particulars	$
Variable manufacturing cost	15,000
Fixed manufacturing cost	28,000
Total indirect manufacturing cost	43,000

3a. Total manufacturing cost

Particulars	$
Direct materials	69,000
Direct labor	35,000
Total manufacturing overhead	43,000
Total manufacturing cost	147,000

3b. Total non manufacturing cost

Particulars	$
Variable selling cost	12,000
Fixed selling cost	18,000
Variable administrative expense	4,000
Fixed administrative expense	25,000
Total non manufacturing cost	59,000

3c. Total conversion cost

Particulars	$
Direct labor	35,000
Total manufacturing overhead	43,000
Total conversion cost	78,000

Total Prime cost

Particulars	$
Direct materials	69,000
Direct labor	35,000
Total Prime cost	104,000

4a. Total Variable manufacturing cost

Particulars	$
Variable manufacturing overhead	15,000
Total Variable manufacturing cost	15,000

4b. Total Fixed cost

Particulars	$
Fixed manufacturing overhead	28,000
Fixed selling expense	18,000
Fixed administrative expense	25,000
Total Fixed cost	71,000

4c. Variable cost per unit produced and sold

Particulars	$
Variable manufacturing overhead	15,000
Variable selling expense	12,000
Variable administrative expense	4,000
Total Variable cost	31,000

Variable cost per unit = $31,000 / 1,000 units = $31 per unit

5a. Incremental manufacturing cost

Particulars	$
Direct materials	69,000
Direct labor	35,000
Variable manufacturing overhead	15,000
Incremental manufacturing cost	119,000

Incremental manufacturing cost per unit = $119,000 / 1,000 units = $119 per unit

All the best...