Listed here are the costs associated with the production of 1,000 drum sets manufactured by TrueBeat. Costs
Question:
Listed here are the costs associated with the production of 1,000 drum sets manufactured by TrueBeat.
Costs |
1. Plastic for casing—$16,000 |
2. Wages of assembly workers—$91,000 |
3. Property taxes on factory—$5,000 |
4. Office accounting salaries—$43,000 |
5. Drum stands—$39,000 |
6. Rent cost of office for accountants—$12,000 |
7. Office management salaries—$200,000 |
8. Annual fee for factory maintenance—$14,000 |
9. Sales commissions—$20,000 |
10. Factory machinery depreciation, straight-line—$40,000 |
Problem 1-1A (Algo) Part 1
Required:
1. Classify each cost and its amount as either product or period. The first cost is completed as an example.
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Problem 1-1A (Algo) Part 2
2. Compute the average manufacturing cost per drum set.
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Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw