Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month:

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 the 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 (assume there are no opening or closing balances for work in process inventories)? 

(b) What is the total non-manufacturing cost? 

(c) What is the total conversion cost and prime cost?
4. With respect to cost classifications for predicting cost behaviour: 

(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. If Dozier produced 1,100 units instead of 1,000 units, how much incremental manufacturing cost would they incur to make the additional 100 units?

Transcribed Image Text:

Item Direct materials. Direct labour.. Variable manufacturing overhead (indirect materials). Fixed manufacturing overhead (depreciation, equipment). Variable selling expense (commissions).. Fixed selling expense (sales staff salaries).. Variable administrative expense (part-time staff, hourly wages) Fixed administrative expense (full-time staff, salaries). Amount $69.000 35.000 15,000 28,000 12,000 18,000 4,000 25,000