7/25/2020 Assignment Print View

 
3.  
 

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 $ 73,000

Direct labor $ 37,000
Variable manufacturing overhead $ 16,600
Fixed manufacturing overhead 29,200
Total manufacturing overhead $ 45,800
Variable selling expense $ 12,800
Fixed selling expense 19,600
Total selling expense $ 32,400
Variable administrative expense $ 4,400
Fixed administrative expense 25,800
Total administrative expense $ 30,200

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?

Complete this question by entering your answers in the tabs below.

Required 1 Required 2 Required 3 Required 4 Required 5

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? (Round your answer to the nearest whole dollar amount.)

5a. Incremental cost per unit produced

 Required 4 Required 5 

Garrison 16e Rechecks 2017-08-07, 2018-07-27

References

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7/25/2020 Assignment Print View

Worksheet Learning Objective: 01-02
Identify and give examples
of each of the three basic
manufacturing cost
categories.
Learning Objective: 01-05 Understand cost classifications
used in making decisions: differential costs, sunk costs,
and opportunity costs.

Difficulty: 2 Medium Learning Objective: 01-03

Understand cost
classifications used to
prepare financial
statements: product costs
and period costs.

Learning Objective: Learning Objective: 01-04

01-01 Understand Understand cost
cost classifications classifications used to
used for assigning predict cost behavior:
costs to cost variable costs, fixed costs,
objects: direct costs and mixed costs.
and indirect costs.

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