Help Save Chapter 1 2 Dozier Compemy produced and sold 1000

Help Save Chapter 1 2 Dozier Compemy produced and sold 1,000 units during its first month of operations It the month: reported the following costs and expenses for Direct laber s 38, 580 ing overhead 5 17,800 ing overhead s 13.40 Total selling expesse 4,700 1 With respect to cost classifications for preparing fnancial statements 2. With respect to cost classifications for assigning costs to cost objects 3 With respect to cost classifications for manufacturers: a. What is the total product cost? b. What is the total perlod cost? a What is total direct manufacturing cost? b. What is the total indirect manufacturing cost? a. What is the total manufacturing cost? b. What is the total nonmanufacturing cost? c What is the total conwersion cost and prime cost? 4. With respect to cost classifications for predicting cost behavior 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 t1000 units, how much incremental manufacturing cost would it have incurred to make the additional unit? Complete this question by entering vour answers in the tabs below. 20 5

Solution

1. a. Total Product Cost = Direct Materials + Direct Labor + Total Manufacturing overheads

= 76,000 + 38,500 + 47,900 = $162,400

b. Total Period Costs are the indirect costs which are not related to the manufacturing of the product.

Total Period Costs = Selling expenses + Administrative expenses

= 34,200 + 31,100 = $65,300

2. a. Total Direct Manufacturing costs is the summation of direct material, direct labor and other direct costs

Total Direct Manufacturing Costs = Material + Labor

= 76,000 + 38,500 = 114,500

b. Total Indirect manufacturing costs = Manufacturing overheads used in production

= 47,900

3. a. Total Manufacturing costs = Materials + Labor + Manufacturing Overheads.

= 76,000 + 38,500 + 47,900 = $162,400

b. Total non-manufacturing costs = Selling expenses + Admin Expenses

= 34,200 + 31,100 = 65,300

c. Prime cost includes expenditures directly related to creating finished products like direct material and labor while conversion costs are the expenses incurred when turning raw materials into a product and includes manufacturing overheads also.

Prime cost = Material + Labor =  76,000 + 38,500 = 114,500

Conversion cost = Direct Materials + Direct Labor + Total Manufacturing overheads = $162,400

4. a. Total Variable manufacturing cost = Direct Material + Direct Labor + Variable manufacturing overheads

= 76,000 + 38,500 + 17,800 = $132,300

b. Total Fixed cost for the company = Fixed manufacturing + fixed selling expense + Fixed admin expense

= 30,100 + 20,800 + 26,400 = 77,300

c. Variable cost per unit = Total variable cost / total units produced

Total Variable cost = Material + Labor + Variable mmanufacturing + variablle selling expense + variable admin expense

= $150,400

Variable cost per unit = 150,400 / 1000 = $150.4