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 $ 70,000 Direct labor $ 35,500 Variable manufacturing overhead $ 15,400 Fixed manufacturing overhead 28,300 Total manufacturing overhead $ 43,700 Variable selling expense $ 12,200 Fixed selling expense 18,400 Total selling expense $ 30,600 Variable administrative expense $ 4,100 Fixed administrative expense 25,200 Total administrative expense $ 29,300 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?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...

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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			$	70,000
Direct labor			$	35,500
Variable manufacturing overhead	$	15,400
Fixed manufacturing overhead		28,300
Total manufacturing overhead			$	43,700
Variable selling expense	$	12,200
Fixed selling expense		18,400
Total selling expense			$	30,600
Variable administrative expense	$	4,100
Fixed administrative expense		25,200
Total administrative expense			$	29,300

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?

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