Question
In: Accounting
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the...
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 | $ | 74,000 | ||||
| Direct labor | $ | 37,500 | ||||
| Variable manufacturing overhead | $ | 17,000 | ||||
| Fixed manufacturing overhead | 29,500 | |||||
| Total manufacturing overhead | $ | 46,500 | ||||
| Variable selling expense | $ | 13,000 | ||||
| Fixed selling expense | 20,000 | |||||
| Total selling expense | $ | 33,000 | ||||
| Variable administrative expense | $ | 4,500 | ||||
| Fixed administrative expense | 26,000 | |||||
| Total administrative expense | $ |
30,500 |
||||
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?
Solutions
Expert Solution
a. Calculation of total Manufacturing Cost or Product Cost:
Manufacturing Cost = Direct Material + Direct Labor + Manufacturing Overhead
Total Manufacturing Cost = $74,000 + $37,500 + $46,500 = $158,000
b. Calculation of Total Non-Manufacturing cost
Non-manufacturing costs refer to those incurred outside the factory or production department. These are costs are not needed in transforming materials into finished goods. Non-manufacturing costs include: selling expenses and general expenses.
Therefore.
Non-Mnufacturing Cost = Selling expenses + General and Administrative Expenses
Total Non- Manufacturing Cost = $33,000 + $30,500 = $63,500
c. Calcultion of total conversion cost and prime cost
Total Conversion Cost : Conversion costs are the manufacturing costs needed to convert the direct materials into products.
Total Conversion Cost = Direct Labor Cost + Manufacturig or Factory Overhead Cost
Direct Labor Cost = $37,500
Factory Overhead Cost = Variable manufacturing overhead + Fixed manufacturing overhead
Factory Overhead Cost = $17,000 + $29,500 = $46,500
Therefore,
Total Conversion Cost = Direct Labor Cost + Manufacturig or Factory Overhead Cost
Total Conversion Cost = $37,500 + $46,500 = $84,000
Prime Cost: Prime cost is the direct cost of manufacturing an item. Prime cost includes Direct Material and Direct Labor.
Prime Cost = Direct Material + Direct Labor = $74,000 + $37,500 = $111,500
ekkarill92 answered 9 months agoRelated Solutions
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the...
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...
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the...
Dozier Company produced and sold 1,000 units during its first
month of operations. It reported the following costs and expenses
for the month: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 Material
$77,000
Direct Labor
$39,000
Variable Manufacturing Overhead
$18,200
Fixed Manufacturing Overhead
$30,400
Total Manufacturing Overhead
$48,600
Variable Selling expense
$13,600
Fixed Selling expense
$21,200
Total Selling expense
$34,800
Variable Administrative expense
$4,800
Fixed...
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the...
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
$
84,000
Direct labor
$
42,500
Variable manufacturing overhead
$
21,000
Fixed manufacturing overhead
32,500
Total manufacturing overhead
$
53,500
Variable selling expense
$
15,000
Fixed selling expense
24,000
Total selling expense
$
39,000
Variable administrative expense
$
5,500
Fixed administrative expense
28,000
Total administrative expense
$
33,500
Required:
1. With respect to cost classifications...
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the...
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...
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the...
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 $ 85,000
Direct labor $ 43,000
Variable manufacturing overhead $ 21,400
Fixed manufacturing overhead 32,800
Total manufacturing overhead $ 54,200
Variable selling expense $ 15,200
Fixed selling expense 24,400
Total selling expense $ 39,600
Variable administrative expense $ 5,600
Fixed administrative expense 28,200
Total administrative expense $ 33,800
Required:
1. With respect to cost classifications...
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the...
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
$
77,000
Direct labor
$
39,000
Variable manufacturing overhead
$
18,200
Fixed manufacturing overhead
30,400
Total manufacturing overhead
$
48,600
Variable selling expense
$
13,600
Fixed selling expense
21,200
Total selling expense
$
34,800
Variable administrative expense
$
4,800
Fixed administrative expense
26,600
Total administrative expense
$
31,400
Required:
1. With respect to cost classifications...
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the...
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...
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the...
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
$
72,000
Direct labor
$
36,500
Variable manufacturing overhead
$
16,200
Fixed manufacturing overhead
28,900
Total manufacturing overhead
$
45,100
Variable selling expense
$
12,600
Fixed selling expense
19,200
Total selling expense
$
31,800
Variable administrative expense
$
4,300
Fixed administrative expense
25,600
Total administrative expense
$
29,900
Required:
1. With respect to cost classifications...
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the...
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
$
74,000
Direct labor
$
37,500
Variable manufacturing overhead
$
17,000
Fixed manufacturing overhead
29,500
Total manufacturing overhead
$
46,500
Variable selling expense
$
13,000
Fixed selling expense
20,000
Total selling expense
$
33,000
Variable administrative expense
$
4,500
Fixed administrative expense
26,000
Total administrative expense
$
30,500
4. With respect to
cost classifications for...
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month:
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 $ 82,000Direct labor $ 41,500Variable manufacturing overhead$ 20,200 Fixed manufacturing overhead31,900 Total manufacturing overhead $ 52,100Variable selling expense$ 14,600 Fixed selling expense23,200 Total selling expense $ 37,800Variable administrative expense$ 5,300 Fixed administrative expense27,600 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...
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