Job Order CostingRequired information

Problem $18-1$A $($Algo$)$ Classifying costs and computing cost per unit LO C$2,$ P$2$

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Listed here are the costs associated with the production of $1,000$ drum sets manufactured by TrueBeat.

Costs$1.$ Plastic for casing$$$$23,0002.$ Wages of assembly workers$$$$85,0003.$ Property taxes on factory$$$$4,0004.$ Office accounting salaries$$$$31,0005.$ Drum stands$$$$28,0006.$ Rent cost of office for accountants$$$$12,0007.$ Office management salaries$$$$220,0008.$ Annual fee for factory maintenance$$$$13,0009.$ Sales commissions$$$$17,00010.$ Factory machinery depreciation, straight$-$line$$$$47,000$

Problem $18-1$A $($Algo$)$ Part $1$

Required:

$1.$ Classify each cost and its amount as either product or period. The first cost is completed as an example.

To begin, select one of the following types of businesses:

Custom furniture maker

Window repair shop

Law firm

Landscape company

Theater show production

Describe how your chosen business might use Job Order Costing to account for its product$($s$)$ or service$($s$)$: What direct and indirect product costs would the company incur? List at least five costs. Are these costs variable or fixed? What typical period costs would you expect your chosen type of business to incur? List at least three period costs. What overhead allocation base would you suggest for the company to use? Explain your reasoning.