Listed here are the total costs associated with the 2017 production of 1,000 drum sets manufactured by TrueBeat. The drum sets sell for $476 each.

	Costs
1.	Plastic for casing$16,000
2.	Wages of assembly workers$80,000
3.	Property taxes on factory$4,000
4.	Accounting staff salaries$42,000
5.	Drum stands (1,000 stands purchased)$38,000
6.	Rent cost of equipment for sales staff$36,000
7.	Upper management salaries$150,000
8.	Annual flat fee for factory maintenance service$13,000
9.	Sales commissions$18 per unit
10.	Machinery depreciation, straight-line$36,000

1. Calculate the manufacturing cost per drum set

2.

hown here are annual financial data at December 31, 2017, taken from two different companies.

	Music World Retail			Wave-Board Manufacturing
Beginning inventory
Merchandise	$	125,000
Finished goods				$	340,000
Cost of purchases		250,000
Cost of goods manufactured					593,000
Ending inventory
Merchandise		90,000
Finished goods					290,000

2. Prepare the cost of goods sold section of the income statement at December 31, 2017, for each company in Merchandising Business and Manufacturing Business.