NAMA : MUH.

SYUKUR
NIM : A031191077
MATA KULIAH: AKUNTANSI MANAJEMEN
TUGAS : PROBLEM 1-23 DAN PROBLEM 1-24

PROBLEM 1–23 Cost Classification LO1–1, LO1–3, LO1–4

Listed below are costs found in various organizations.
1. Property taxes, factory.
2. Boxes used for packaging detergent produced by the company.
3. Salespersons’ commissions.
4. Supervisor’s salary, factory.
5. Depreciation, executive autos.
6. Wages of workers assembling computers.
7. Insurance, finished goods warehouses.
8. Lubricants for production equipment.
9. Advertising costs.
10. Microchips used in producing calculators.
11. Shipping costs on merchandise sold.
12. Magazine subscriptions, factory lunchroom.
13. Thread in a garment factory.
14. Executive life insurance.
15. Ink used in textbook production.
16. Fringe benefits, materials handling workers.
17. Yarn used in sweater production.
18. Wages of receptionist, executive offices.
Required:
Prepare an answer sheet with column headings as shown below. For each cost item,
indicate whether it would be variable or fixed with respect to the number of units
produced and sold; and then whether it would be a selling cost, an administrative
cost,or a manufacturing cost. If it is a manufacturing cost, indicate whether it is direct
cost or an indirect cost with respect to units of product. Three sample answers are
provided for illustration.
Answer:
 Variable or Selling Administrative Direc Indirec
Cost Item
Fixed Cost Cost t t
Ex
Direct labor Variable Yes
.
Executive salaries Fixed Yes
Factory rent Fixed Yes
1. Property taxes, factory. Fixed Yes
Boxes used for packaging
2. detergent produced by the Variable Yes
company.
3. Salespersons’ commissions. Variable Yes
4. Supervisor’s salary, factory. Fixed Yes
5. Depreciation, executive autos. Fixed Yes
Wages of workers assembling
6. Variable Yes
computers.
Insurance, finished goods
7. Fixed Yes
warehouses.
Lubricants for production
8. Variable Yes
equipment.
9. Advertising costs. Fixed Yes
10 Microchips used in producing
Variable Yes
. calculators.
11 Shipping costs on merchandise
Variable Yes
. sold.
12 Magazine subscriptions, factory
Fixed Yes
. lunchroom.
13
Thread in a garment factory. Variable Yes
.
14
Executive life insurance. Fixed Yes
.
15
Ink used in textbook production. Variable Yes
.
16 Fringe benefits, production
Fixed Yes
. supervisors.
17
Yarn used in sweater production. Variable Yes
.
18 Wages of receptionist, executive
Fixed Yes
. offices.
PROBLEM 1–24 Different Cost Classifications for Different Purposes LO1–1,
LO1–2, LO1–3, LO1–4, LO1–5 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:
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?
Answer:
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. a. Total product cost= 69000 + 35000 + 43000 = $147000

b. Total period cost= 30000 + 29000 = $59000

2. a. Direct manufacturing overhead= variable manufacturing overhead= 15000

b. Indirect manufacturing overhead= fixed manufacturing overhead= $28000

3. a. manufacturing cost= direct labor + direct material + manufacturing overhead

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

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

expense

Total non-manufacturing cost= 30000 + 29000= 59000

c. The total conversion cost is computed as follows:

Direct labor $ 35,000

Total manufacturing overhead 43,000

Total conversion cost $ 78,000

The total prime cost is computed as follows:
 Direct materials $ 69,000

Direct labor 35,000

Total prime cost $ 104,000

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

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

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

5. a. The cost of making one more unit is $135