Question
I need help with the last of these questions (the italicized one). I have tried a few different methods, but none show as correct. I
I need help with the last of these questions (the italicized one). I have tried a few different methods, but none show as correct. I have put the answers I have found for the other questions (bold numbers).
Problem 1-24 Different Cost Classifications for Different Purposes [LO1-1, LO1-2, LO1-3, LO1-4, LO1-5]
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 classifications for preparing financial statements:
a. What is the total product cost? $147,000
b. What is the total period cost? $59,000
2. With respect to cost classifications for assigning costs to cost objects:
a. What is total direct manufacturing cost? $104,000
b. What is the total indirect manufacturing cost? $43,000
3. With respect to cost classifications for manufacturers:
a. What is the total manufacturing cost? $147,000
b. What is the total nonmanufacturing cost? $59,000
c. What is the total conversion cost and prime cost? $78,000 and $104,000
4. With respect to cost classifications for predicting cost behavior:
a. What is the total variable manufacturing cost? $119,000
b. What is the total fixed cost for the company as a whole? $71,000
c. What is the variable cost per unit produced and sold? $135
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?
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