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 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 $ 21,000 32,500 $ 15,000 24,000 $ 5,500 28,000 $ 84,000 $ 42,500 $ 53,500 $ 39,000 $ 33,500 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?
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 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 $ 21,000 32,500 $ 15,000 24,000 $ 5,500 28,000 $ 84,000 $ 42,500 $ 53,500 $ 39,000 $ 33,500 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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Process Costing
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Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
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### Dozier Company Financial Analysis
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:** $84,000
- **Direct labor:** $42,500
- **Variable manufacturing overhead:** $21,000
- **Fixed manufacturing overhead:** $32,500
**Total manufacturing overhead:** $53,500
- **Variable selling expense:** $15,000
- **Fixed selling expense:** $24,000
**Total selling expense:** $39,000
- **Variable administrative expense:** $5,500
- **Fixed administrative expense:** $28,000
**Total administrative expense:** $33,500
#### Required Analysis:
1. **Cost Classifications for Financial Statements:**
- **Total Product Cost:** Sum of direct materials, direct labor, and total manufacturing overhead.
- **Total Period Cost:** Sum of total selling expense and total administrative expense.
2. **Cost Classifications for Assigning Costs to Cost Objects:**
- **Total Direct Manufacturing Cost:** Sum of direct materials and direct labor.
- **Total Indirect Manufacturing Cost:** Total manufacturing overhead.
3. **Cost Classifications for Manufacturers:**
- **Total Manufacturing Cost:** Sum of direct materials, direct labor, and total manufacturing overhead.
- **Total Nonmanufacturing Cost:** Sum of total selling expense and total administrative expense.
- **Total Conversion Cost:** Sum of direct labor and total manufacturing overhead.
- **Total Prime Cost:** Sum of direct materials and direct labor.
4. **Cost Classifications for Predicting Cost Behavior:**
- **Total Variable Manufacturing Cost:** Sum of direct materials, direct labor, and variable manufacturing overhead.
- **Total Fixed Cost:** Sum of fixed manufacturing overhead, fixed selling expense, and fixed administrative expense.
- **Variable Cost Per Unit Produced and Sold:** Dividing the total variable manufacturing cost by the number of units produced and sold (1,000 units).
5. **Cost Classifications for Decision Making:**
- Incremental manufacturing cost for producing an additional unit if Dozier had produced 1,001 units instead of 1,000 units.
#### Input Fields for Cost Calculations:
Complete the following calculations by entering your answers in the fields below:
**Required 1:**
- **Total Product Cost:** [Input field]
- **Total](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc80a8a85-82ce-4b91-9319-267a25cd5d83%2F22a9ce71-e5d4-4fcb-b52f-36e71fdf1e6b%2F5erteaq_processed.png&w=3840&q=75)
Transcribed Image Text:---
### Dozier Company Financial Analysis
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:** $84,000
- **Direct labor:** $42,500
- **Variable manufacturing overhead:** $21,000
- **Fixed manufacturing overhead:** $32,500
**Total manufacturing overhead:** $53,500
- **Variable selling expense:** $15,000
- **Fixed selling expense:** $24,000
**Total selling expense:** $39,000
- **Variable administrative expense:** $5,500
- **Fixed administrative expense:** $28,000
**Total administrative expense:** $33,500
#### Required Analysis:
1. **Cost Classifications for Financial Statements:**
- **Total Product Cost:** Sum of direct materials, direct labor, and total manufacturing overhead.
- **Total Period Cost:** Sum of total selling expense and total administrative expense.
2. **Cost Classifications for Assigning Costs to Cost Objects:**
- **Total Direct Manufacturing Cost:** Sum of direct materials and direct labor.
- **Total Indirect Manufacturing Cost:** Total manufacturing overhead.
3. **Cost Classifications for Manufacturers:**
- **Total Manufacturing Cost:** Sum of direct materials, direct labor, and total manufacturing overhead.
- **Total Nonmanufacturing Cost:** Sum of total selling expense and total administrative expense.
- **Total Conversion Cost:** Sum of direct labor and total manufacturing overhead.
- **Total Prime Cost:** Sum of direct materials and direct labor.
4. **Cost Classifications for Predicting Cost Behavior:**
- **Total Variable Manufacturing Cost:** Sum of direct materials, direct labor, and variable manufacturing overhead.
- **Total Fixed Cost:** Sum of fixed manufacturing overhead, fixed selling expense, and fixed administrative expense.
- **Variable Cost Per Unit Produced and Sold:** Dividing the total variable manufacturing cost by the number of units produced and sold (1,000 units).
5. **Cost Classifications for Decision Making:**
- Incremental manufacturing cost for producing an additional unit if Dozier had produced 1,001 units instead of 1,000 units.
#### Input Fields for Cost Calculations:
Complete the following calculations by entering your answers in the fields below:
**Required 1:**
- **Total Product Cost:** [Input field]
- **Total
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VIEWStep 5: 2b) Total indirect manufacturing cost :
VIEWStep 6: 3a) Total manufacturing cost :
VIEWStep 7: 3b) Total non manufacturing cost :
VIEWStep 8: 3c) Total Conversion cost and Prime cost :
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Could you help me with these two as well? they are part of the same question
Transcribed Image Text: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
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
$ 21,000
32,500
$ 15,000
24,000
$ 5,500
28,000
Required 1 Required 2 Required 3
Required:
1. With respect to cost classifications for preparing financial statements:
a. What is the total product cost?
5a.
$ 84,000
$ 42,500
b. What is the total period cost?
2. With respect to cost classifications for assigning costs to cost objects:
Incremental cost per unit produced
$ 53,500
a. What is total direct manufacturing cost?
b. What is the total indirect manufacturing cost?
3. With respect to cost classifications for anufac
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:
$ 39,000
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?
$ 33,500
Complete this question by entering your answers in the tabs below.
Required 4
< Required 4
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.)
Required 5
Required 5 >
Transcribed Image Text:Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses fo
the month:
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
Required 1
$ 21,000
32,500
Required 2 Required 3
$ 15,000
24,000
$ 5,500
28,000
4a. Total variable manufacturing cost
4b. Total fixed cost
4c. Variable cost per unit produced and sold
$ 84,000
$ 42,500
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?
$ 53,500
Complete this question by entering your answers in the tabs below.
$ 39,000
$ 33,500
< Required 3
Required 4 Required 5
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? (Round your answer to the nearest whole dollar amount.)
Required 5 >
Show less A
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