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
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 |
| $69,000 |
Direct labor $35,000 Variable manufacturing overhead |
$15,000 | |
Fixed manufacturing overhead | 28,000 |
|
Total manufacturing overhead |
| $43,000 |
Variable selling expense | $12,000 |
|
Fixed selling expense | 18,000 |
|
Total selling expense |
| $30,000 |
Variable administrative expense | $4,000 |
|
Fixed administrative expense | 25,000 |
|
Total administrative expense |
| $29,000 |
Required:
1.With respect to cost classification s for preparing financial state ment s:
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 indirec t manu facturing cost?
3.With respect to cost classifications for manu facturers :
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 classification s for predicting cost behavior:
a)What is the total variable manu factur ing 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 classification s for decision making:
a) If Dozier had produced 1 ,00 I unit s instead of 1 ,000 units, how much incrementa l manufacturing cost would it have incurred to make the additional unit ?
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