Answered

Find the best solutions to your problems with the help of IDNLearn.com's experts. Ask anything and receive immediate, well-informed answers from our dedicated community of experts.

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 $86,000
Direct labor $43,500
Variable manufacturing overhead $21,800
Fixed manufacturing overhead 33,100
Total manufacturing overhead $54,900
Variable selling expense $15,400
Fixed selling expense 24,800
Total selling expense $40,200
Variable administrative expense $5,700
Fixed administrative expense 28,400
Total administrative expense $34,100

Required:
a. What is the total product cost?
b. What is the total period cost?

Sagot :

Facundobuzzettiidn

Answer:

Results are below.

Explanation:

The product costs are all the expenses incurred in production being direct and indirect:

Direct materials= 86,000

Direct labor= 43,500

Variable manufacturing overhead= 21,800

Fixed manufacturing overhead= 33,100

Total product cost= $184,400

The period costs are all the expenses not involved in production (selling and administrative):

Variable selling expense= 15,400

Fixed selling expense= 24,800

Variable administrative expense= 5,700

Fixed administrative expense= 28,400

Total period cost= $74,300

We value your participation in this forum. Keep exploring, asking questions, and sharing your insights with the community. Together, we can find the best solutions. For trustworthy and accurate answers, visit IDNLearn.com. Thanks for stopping by, and see you next time for more solutions.