Dozier Company produced and sold 1000 units during its first

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 $ 88,000 Direct labor $ 44,500 Variable manufacturing overhead $ 22,600 Fixed manufacturing overhead 33,700 Total manufacturing overhead $ 56,300 Variable selling expense $ 15,800 Fixed selling expense 25,600 Total selling expense $ 41,400 Variable administrative expense $ 5,900 Fixed administrative expense 28,800 Total administrative expense $ 34,700 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?

Solution

As per Chegg Policy, i have to answer only first four subparts of a question, when there are more than four subparts.

Answer to part 1

A. total product cost:-

B. Total Period cost:-

Answer to part 2

A. Total direct manufacturing cost:-

B. Total indirect manufacturing cost:-

Answer to part 3

A. Total manufacturing cost:-

Total manufacturing cost $ 188800

B. Total non manufacturing cost:-

Total non manufacturing cost $ 76,100

C.total conversion cost and prime cost:-

Direct labor = $44,500 + Total manufacturing overhead 56,300 = Total conversion cost $100,800

Direct materials = $88,000 + Direct labor $ 44,500 =Total prime cost $132,500

Answer to part 4

A. Total variable manufacturing cost

= Direct materials $88,000 + Direct labor 44500 + Variable manufacturing overhead $ 22,600 =Total variable manufacturing cost $155,100

B. total fixed cost:-

Fixed manufacturing overhead = $33,700 + Fixed selling expense $ 25,600 Fixed administrative expense $28,800

= Total fixed cost $88,100

C.variable cost per unit produced and sold

Direct materials $88,000 + Direct labor $ 44,500 + Total variable manufacturing overhead $ 22,600 + Variable selling expense 15,800 + Variable administrative expense $ 5,900

=Total variable cost (a)$176,800

Number of units produced and sold (b) 1,000

Variable cost per unit produced and sold (a) ÷ (b) $76.8