Problem 1-24 (Algo) 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 themonth:

Direct materials		$ 89,000
Direct labor		$ 45,000
Variable manufacturing overhead	$ 23,000
Fixed manufacturing overhead	34,000
Total manufacturing overhead		$ 57,000
Variable selling expense	$ 16,000
Fixed selling expense	26,000
Total selling expense		$ 42,000
Variable administrative expense	$ 6,000
Fixed administrative expense	29,000
Total administrative expense		$ 35,000

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?