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 $ 69,000 direct labor $ 35,000 variable manufacturing overhead $ 15,000 fixed manufacturing overhead 28,000 total manufacturing overhead $ 43,000 variable selling expense $ 12,000 fixed selling expense 18,000 total selling expense $ 30,000 variable administrative expense $ 4,000 fixed administrative expense 25,000 total administrative expense $ 29,000 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: 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?

Instructions are listed below

Explanation:

Giving the following information:

Direct materials $ 69,000: Product

Direct labor $ 35,000: Product

Variable manufacturing overhead $ 15,000: Product  

Fixed manufacturing overhead 28,000: Product

Total manufacturing overhead $ 43,000

Variable selling expense $ 12,000: Period

Fixed selling expense 18,000: Period

Total selling expense $ 30,000

Variable administrative expense $ 4,000: Period

Fixed administrative expense 25,000: Period

Total administrative expense $ 29,000

First, we will determine whether they are period or product costs.

1) Total product cost= 69000 + 35000 + 43000= $147000

Total period cost= 30000 + 29000= $59000

2) Direct manufacturing overhead= variable manufacturing overhead= 15000

Indirect manufacturing overhead= fixed manufacturing overhead= $28000

3) manufacturing cost= direct labor + direct material + manufacturing overhead

manufacturing cost= 35000 + 69000 + 43000= $147,000

Total non-manufacturing cost= Total selling expense + Total administrative expense

Total non-manufacturing cost= 30000 + 29000= 59000

4)Total variable cost= 69000 + 35000 + 15000 + 12000 + 4000= $135,000

Total fixed cost=28000 + 180070 + 25000= $71000

Unitary variable cost=135,000/1000= $135

5) The cost of making one more unit is $135

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