Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following
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:
Variable Direct materials..... Direct labor... manufacturing $69,000 $35,000 $15,000 overhead Fixed manufacturing 28,000 overhead Total manufacturing $43,000 overhead Variable selling $12,000 expense Fixed selling expense. 18,000 Total selling expense. $30,000 Variable administrative $ 4,000 expense Fixed administrative expense Total administrative expense 25,000 $29,000 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?
Step by Step Answer:
Introduction To Managerial Accounting
ISBN: 9781265672003
9th International Edition
Authors: Peter C. Brewer , Ray H. Garrison, Eric Noreen