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?

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Facundobuzzettiid Facundobuzzettiid · Answer 1

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