Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month: Item Amount Direct materials $69,000 Direct labour 35,000 Variable manufacturing overhead (indirect materials) 15,000 Fixed manufacturing overhead (depreciation, equipment) 28,000 Variable selling expense (commissions) 12,000 Fixed selling expense (sales staff salaries) 18,000 Variable administrative expense (part-time staff, hourly wages) 4,000 Fixed administrative expense (full-time staff, salaries) 25,000 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 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting Volume 2

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy

12th Canadian Edition

1119497043, 978-1119497042

More Books

Students also viewed these Accounting questions

Question

An improvement in the exchange of information in negotiations.

Answered: 1 week ago

Question

1. Effort is important.

Answered: 1 week ago