Problem 124 Different Cost Classifications for Different Pur

Problem 1-24 Different Cost Classifications for Different Purposes [L01-1, LO1-2, LO13, LOI-4, LO 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 Direct labor Variable manufacturing overhead $20,200 Fixed manufacturing overhead Total manufacturing overhead Variable selling expense Fixed selling expense Total selling expense Variable administrative expense 5,300 Fixed administrative expense Total administrative expense $82,000 $41,500 31,900 $52,100 $14,600 23,200 $37,800 27,600 $32,900 Required: 1. With respect to cost classifications for preparing financial 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 period 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 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? 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? 5. With respect to cost classifications for decision making:

Solution

1). a). Total Product Cost: = $175600
Direct Material = $82000
Direct Labour =    $41500
Total manfacturing overhead = $52100
Total = $175600

b). Total Period Cost = $70700
Total Selling Cost = $37800
Total Administrative Cost = $32900
Total = $70700

2). a). Total Direct manufacturing cost = $123500
Direct Material = $82000
Direct Labour = $41500
Total = $123500

b). Total indirect manufacturing cost = $52100
Variable manufacturing overhead = $20200
Fixed manufacturing overhead = $31900
Total = $52100

3). a). Total manufacturing cost = $175600
Direct Material = $82000
Direct Labour =    $41500
Total manfacturing overhead = $52100
Total = $175600

b). Total non manufacturing cost = $70700
Total Selling Cost = $37800
Total Administrative Cost = $32900
Total = $70700

c). Total conversion cost = $93600
Direct Labour = $41500
Total manufacturing overhead = $52100
Total = $93600

Total Prime cost = $123500
Direct Material = $82000
Direct Labour = $41500
Total = $123500

4). a). Total variable manufacturing cost = $143700
Direct Material = $82000
Direct Labour =    $41500
Variable manfacturing overhead = $20200
Total = $143700

b). Total fixed cost for the company = $82700
Fixed Manfucturing cost = $31900
Fixed Selling Cost = $23200
Fixed administrative cost = $27600
Total = $82700

c). Variable cost per unit produced and sold = $163.6
Direct Material = $82000
Direct Labour =    $41500
Variable manfacturing overhead = $20200
Variable Selling overhead = $14600
Variable administrative overhead = $5300
Total = $163600
Units = 1000
Cost per unit = $163.6

5). Incremental manufacturing cost: = $143.7
Direct Material = $82000
Direct Labour =    $41500
Variable manfacturing overhead = $20200
Total = $143700
Units = 1000
cost per unit = $143.7