Dozier Company Produced and Sold

Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month: $ 69,0e0 $ 35,000 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing overhead Variable selling expense Fixed selling expense Total selling expense Variable administrative expense Fixed administrative expense Total administrative expense $ 15,0ee 28,000 $ 43,000 $ 12,0e0 18,000 $ 30,000 $ 4,000 25,000 $ 29,0e0 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? 1a. Computation of total product cost Total product cost = Direct Materials + Direct Labor + Manufacturing OH Total product cost = 69000 + 35000 + 43000 = $147000 1b. Computation of total Period cost Total Period cost = Selling Expense + Administrative Expense Total Period cost = 30000 + 29000 = $59000 2a. Computation of total direct manufacturing cost Total direct manufacturing cost = Direct Material + Direct Labor Total direct manufacturing cost = 69000 + 35000 = $104000 2b. Computation of total Indirect manufacturing cost Total Indirect manufacturing cost = Variable MOH + Fixed MOH Total Indirect manufacturing cost = 15000 + 28000 = $43000 3a. Computation of total manufacturing cost Total manufacturing cost = Direct Labor + Direct Labor + Total Manufacturing OH Total manufacturing cost = 69000+ 35000 + 43000 = $147000 3b. Computation of total Nonmanufacturing cost Total Nonmanufacturing cost = Selling Expense + Administrative Expense Total Nonmanufacturing cost = 30000 + 29000 = $59000 3c. Computation of total conversion and Prime cost Total Conversion cost = Direct Labor + Total Manufacturing OH Total Conversion cost = 35000 + 43000 = $88000 Total Prime cost = Direct Material + Direct Labor Total Prime cost = 69000 + 35000 = $104000 4a. Computation of total Variable Manufacturing cost Total Variable Manufacturing cost = Direct Material + Direct Labor + Variable Manufacturing OH Total Variable Manufacturing cost = 69000 + 35000 + 15000 = $119000 4b. Computation of total amount of fixed cost for the company as a whole Total Fixed cost = Fixed MOH + Fixed Selling Expense + Fixed Admninistrative Total Fixed cost = 28000 + 18000 + 25000 = $71000 4c. Computation of Variable cost per unit produced and sold Total Variable cost = Direct Material + Direct Labor + Variable Manufacturing OH + Variable SE + Variable AE Total Variable cost = 69000 + 35000 + 15000 + 12000 + 4000 = $135000 Variable Cost per unit = $135000 / 1000 = $135 5a. Incremental cost = Total Variable Manufacturing Cost / 1000 Incremental cost = 119000 / 1000 Incremental cost per one additional unit = $119