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				$	73,000
Direct labor				$	37,000
Variable manufacturing overhead	$	16,600
Fixed manufacturing overhead		29,200
Total manufacturing overhead				$	45,800
Variable selling expense	$	12,800
Fixed selling expense		19,600
Total selling expense				$	32,400
Variable administrative expense	$	4,400
Fixed administrative expense		25,800
Total administrative expense				$	30,200

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

Solution :

Solution 1 (a)
Direct materials	$ 73,000
Direct labor	$ 37,000
Total manufacturing overhead	$ 45,800
Total product cost	$ 1,55,800

Solution 1 (b)
Total selling expense	$ 32,400
Total administrative expense	$ 30,200
Total period cost	$ 62,600

Solution 2 (a)
Direct materials	$ 73,000
Direct labor	$ 37,000
Total direct manufacturing cost	$ 1,10,000

Solution 2 (b)
Variable Manufacturing overhead	$ 16,600
Fixed manufacturing overhead	$ 29,200
Total indirect manufacturing Cost	$ 45,800

Solution 3(a)
Direct materials	$ 73,000
Direct labor	$ 37,000
Total Manufacturing overhead	$ 45,800
Total manufacturing cost	$ 1,55,800

Solution 3 (b)
Total selling expense	$ 32,400
Total administrative expense	$ 30,200
Total Nonmanufacturing cost	$ 62,600

Solution 3 (c)
Direct labor	$ 37,000
Total manufacturing overhead	$ 45,800
Total conversion cost	$ 82,800
Solution 3 (c)
Direct materials	$ 73,000
Direct labor	$ 37,000
Total prime cost	$ 1,10,000

Solution 4 (a)
Direct materials	$ 73,000
Direct labor	$ 37,000
Variable manufacturing overhead	$ 16,600
Total variable manufacturing cost	$ 1,26,600

Solution 4(b)
Fixed manufacturing overhead	$ 29,200
Fixed selling expense	$ 19,600
Fixed administration expense	$ 25,800
Total fixed cost	$ 74,600

Solution 4 (c)
Direct materials	$ 73,000
Direct labor	$ 37,000
Total variable manufacturing overhead	$ 16,600
Variable selling expense	$ 12,800
Variable administration expense	$ 4,400
Total variable cost (A)	$ 1,43,800
Number of units produced and sold (B)	1,000 units
Variable cost per unit produced and sold ( A / B)	$ 144.00 ($ 143.80 rounded to $ 144)

Solution 5 (a)
Direct materials	$ 73,000
Direct labor	$ 37,000
Variable manufacturing overhead	$ 16,600
Total incremental cost (A)	$ 1,26,600
Number of units produced and sold (B)	1000
Incremental cost per unit produced ( A / B)	$ 127.00 ($ 126.60 rounded to $ 127)

Thank you !!!!!!