In: Accounting
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 | $ | 80,000 | ||||
Direct labor | $ | 40,500 | ||||
Variable manufacturing overhead | $ | 19,400 | ||||
Fixed manufacturing overhead | 31,300 | |||||
Total manufacturing overhead | $ | 50,700 | ||||
Variable selling expense | $ | 14,200 | ||||
Fixed selling expense | 22,400 | |||||
Total selling expense | $ | 36,600 | ||||
Variable administrative expense | $ | 5,100 | ||||
Fixed administrative expense | 27,200 | |||||
Total administrative expense | $ | 32,300 | ||||
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?
1) | total product cost | 171,200 | answer | ||||
total period cost | 68900 | answer | |||||
total product cost | |||||||
Direct materials | 80,000 | ||||||
direct labor | 40,500 | ||||||
total manufacturing overhead | 50,700 | ||||||
total product cost | 171,200 | ||||||
total period cost | |||||||
total selling expense | 36,600 | ||||||
total administrative expense | 32,300 | ||||||
total period cost | 68,900 | ||||||
2) | total direct manufacturing cost | 120,500 | answer | ||||
total indirect manufacturing cost | 50700 | answer | |||||
total direct manufacturing cost | |||||||
direct materials | 80,000 | ||||||
direct labor | 40,500 | ||||||
total direct manufacturing cost | 120,500 | ||||||
total indirect manufacturing cost | |||||||
Variable manufacturing overhead | 19,400 | ||||||
fixed manufacturing overhead | 31,300 | ||||||
total indirect manufacturing cost | 50,700 | ||||||
3a) | Total manufacturing cost | ||||||
Direct materials | 80,000 | ||||||
direct labor | 40,500 | ||||||
Manufacturing overhead | |||||||
Variable manufacturing overhead | 19,400 | ||||||
fixed manufacturing overhead | 31,300 | 50,700 | |||||
total manufacturing cost | 171,200 | answer | |||||
b) | total nonmanufacturing cost | ||||||
total selling expense | 36,600 | ||||||
total administrative expense | 32,300 | ||||||
total non manufacturing cost | 68,900 | answer | |||||
c) | conversion cost | ||||||
direct labor | 40,500 | ||||||
Manufacturing overhead | |||||||
Variable manufacturing overhead | 19,400 | ||||||
fixed manufacturing overhead | 31,300 | 50,700 | |||||
conversion cost | 91,200 | answer | |||||
prime cost | |||||||
Direct materials | 80,000 | ||||||
direct labor | 40,500 | ||||||
prime cost | 120,500 | answer | |||||
4) | total variable manufacturing cost | 139,900 | answer | ||||
total fixed cost | 80,900 | answer | |||||
variable cost per unit produced and sold | 159.20 | answer | |||||
total manufacturing cost | |||||||
direct materials | 80,000 | ||||||
direct labor | 40,500 | ||||||
variable manufacturing overhead | 19,400 | ||||||
total variable manufacturing cost | 139,900 | ||||||
fixed manufacturing overhead | 31,300 | ||||||
fixed selling expense | 22,400 | ||||||
fixed administrative expense | 27,200 | ||||||
total fixed cost | 80,900 | ||||||
variable cost per unit produced and sold | |||||||
direct materials | 80,000 | ||||||
direct labor | 40,500 | ||||||
variable manufacturing overhead | 19,400 | ||||||
variable selling expense | 14,200 | ||||||
variable administrative expense | 5,100 | ||||||
total variable cost (a) | 159,200 | ||||||
number of units produced and sold (b) | 1,000 | ||||||
variable cost per unit produced and sold | 159.20 | ||||||
5) | incremental cost per unit produced | 139.9 | answer | ||||
(139900/1000)*1 | |||||||