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 $ 72,000 Direct labor $ 36,500 Variable manufacturing overhead $ 16,200 Fixed manufacturing overhead 28,900 Total manufacturing overhead $ 45,100 Variable selling expense $ 12,600 Fixed selling expense 19,200 Total selling expense $ 31,800 Variable administrative expense $ 4,300 Fixed administrative expense 25,600 Total administrative expense $ 29,900 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?

Respuesta :

Answer:

a. Total Product Cost

Direct Materials       $ 72000

Direct Labor             $ 36500

Variable manufacturing overhead $ 16,200

Fixed manufacturing overhead 28,900

Total Cost =  $ 153,600

Unit Cost = $ 153,600/ 1000=  $ 153.6

b. Total Period Cost= Total Product Cost + total selling Expense + total administrative expense

Total Period Cost = $ 153,600 + $ 31,800 + $ 29,000

Total Period Cost= $ 214,400

2.a. Total Direct Manufacturing Cost = Direct Materials  $ 72000+

Direct Labor  $ 36500 +  Fixed manufacturing overhead 28,900

Total Direct Manufacturing Cost = $ 137,400

2.b Total Indirect Manufacturing Cost = Total Cost - Total Manufacturing Costs= $ 214,400- $ 153600=  $ 60,800

3. a. Total Manufacturing Cost is $ 153,600

b. Total Non manufacturing Cost=  total selling Expense + total administrative expense

Total Non manufacturing Cost = $ 31,800 + $ 29,000

Total Non manufacturing Cost =$ 60,800

c. Total Conversion Cost = Direct Labor + Factory Overhead =  $ 36,500 +  $ 45,100 =$ 81, 600

d. Prime Cost = Direct Material + Direct Labor= $ 72000+   $ 36500= $ 108,500

4. a.  Total variable manufacturing cost = $ 16,200

b. Total Fixed Cost = Total Cost- Total Variable Costs

Total fixed Costs =  $ 214,400- $ 77,000= $ 137,400

c. Variable cost per unit = Variable costs / no of units

Variable cost per unit = $ 16,200+ $ 12,600 + $ 4,300/1000=$ 33,100/1000

Variable cost per unit = $ 33.1

5. Additional costs for that unit would be = $ 72 + $ 36.5 + $ 16.2 + $ 45.1 + $ 12.6=  $ 182.4