Problem 1-1A (Algo) Classifying costs and computing cost per unit LO C2, P2

Skip to question

[The following information applies to the questions displayed below.]

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.

Costs	Product	Period
1. Plastic for casing	$16,000
2. Wages of assembly workers
3. Property taxes on factory
4. Office accounting salaries
5. Drum stands
6. Rent cost of office for accountants
7. Office management salaries
8. Annual fee for factory maintenance
9. Sales commissions
10. Factory machinery depreciation, straight-line

Problem 1-1A (Algo) Part 2

2. Compute the average manufacturing cost per drum set.

Calculation of Manufacturing Cost per Drum Set
Manufacturing costs
Total manufacturing costs