Question

Required Information Problem 18-1A Cost computation, classification, and analysis LO C2, C3 [The following information applies to the questions displayed below) Listed here are the total costs associated with the 2017 production of 1,000 drum sets manufactured by TrueBeat. The drum sets sell for $523 each. 1. Plastic for casing-$23, cee 2. Wages of assembly workers-581, eee 3. Property taxes on factory-55, eee 4. Accounting staff salaries-333, eee 5. Drum stands (1, eee stands purchased)-$49, eee 6. Rent cost of equipment for sales staff-$48, eee 7. Upper management salaries-5180, eee 8. Annual flat fee for factory saintenance service-$22,00 9. Sales comissions-$20 per unit le. Machinery depreciation, straight-line-537,000

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Answer 1

Solution:
TrueBeat
Calculation of Manufacturing Cost per Drum Set
For the Year ended December 31,2017
Item	Total Cost	Per unit cost
Variable production cost:	a	b = a/1000 units
Plastic for casting	$23,000	$23
Wages of assembly workers	$81,000	$81
Drum stands	$40,000	$40
Total Variable production costs   (A)	$144,000	$144
Fixed production costs
Property taxes on factory	$5,000	$5
Annual fee for maintainance service	$22,000	$22
Machinery depreciation	$37,000	$37
Total fixed production costs     (B)	$64,000	$64
Total Production cost   (A+B)	$208,000	$208
Explanation:
Accounting staff salaries is admistrative expense , therefore not included above
Rent cost of equipment for sales staff is selling and distribution expense, therefore not to be included in statement
Upper management salaries is admistrative expense , therefore not included above
Sales Commissions is selling and distribution expense, therefore not to be included in statement