Required information Problem 1-1A Cost computation, classification, and analysis
ID: 2403880 • Letter: R
Question
Required information Problem 1-1A 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 $482 each Costs 1. Plastic for casing-$18,890 2. Wages of assembly workers-$88,00 3. Property taxes on factory-$4,800 4. Accounting staff salaries-$39,e00 5. Drum stands (1,000 stands purchased)-$38,000 6. Rent cost of equipment for sales staff-$36,000 7. Upper management salaries-$155,0e 8. Annual flat fee for factory maintenance service-$19,0ee 9. Sales commissions-$21 per unit 10. Machinery depreciation, straight-line-$37,00eExplanation / Answer
DrumBeat
Calculation of Manufacturing Cost per Drum Set
For Year Ended December 31, 2017
Item
Total cost [1000 drum]
Per unit cost
Variable production costs
Plastic for casing
Wages of assembly workers
Drum stands
Total variable production costs
Fixed production costs
Property taxes on factory
Annual fee for maintenance service
Machinery depreciation
Total fixed production costs
Total production cost
DrumBeat
Calculation of Manufacturing Cost per Drum Set
For Year Ended December 31, 2017
Item
Total cost [1000 drum]
Per unit cost
Variable production costs
Plastic for casing
$ 18,000.00 $ 18.00Wages of assembly workers
$ 88,000.00 $ 88.00Drum stands
$ 38,000.00 $ 38.00Total variable production costs
$ 144,000.00 $ 144.00Fixed production costs
Property taxes on factory
$ 4,000.00 $ 4.00Annual fee for maintenance service
$ 19,000.00 $ 19.00Machinery depreciation
$ 37,000.00 $ 37.00Total fixed production costs
$ 60,000.00 $ 60.00Total production cost
$ 204,000.00 $ 204.00 Accounting Staff Salary 39000 Admin Exp hence not considered for calculating production cost Rent Cost of Equipment for sales staff 36000 Selling Expense Upper Management Salary 155000 Admin Exp hence not considered for calculating production cost Sales Commission $21 pu Selling ExpenseRelated Questions
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