Question

Required information Problem 14-1A 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 $500 each. Costs 1. Plastic for casing-$17,000 2. Wages of assembly workers-582,000 3. Property taxes on factory-55,000 4. Accounting staff salaries-$35,000 5. Drum stands (1.000 stands purchased)-$26,000 6. Rent cost of equipment for sales staff-$10,000 7. Upper management salaries-$125,000 8. Annual flat fee for factory maintenance service-510,000 9. Sales commissions-515 per unit 10. Machinery depreciation, straight-line-$40,000 Duellom 14.1A Part 2

Answer 1

TrueBeat
Calculation of Manufacturing Cost per Drum set
For the Year Ended December 31,2017
Item	Total Cost	Per Unit Cost
Variable production costs
Plastic for casing	17,000	17,000/1,000 = 17
Wages for assembly workers	82,000	82,000/1,000 = 82
Drum stands	26,000	26,000/1,000 = 26
Total Variable production costs	125,000	125
Fixed production costs
Property taxes on factory	5,000	5,000/1,000=5
Annual flat fee for factory maintenance service	10,000	10,000/1,000 = 10
Machinery depreciation straight-line	40,000	40,000/1,000 = 40
Total Fixed production costs	55,000	55
Total Production Cost	$180,000	$180

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