[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 $528 each.

	Costs
1.	Plastic for casing$23,000
2.	Wages of assembly workers$83,000
3.	Property taxes on factory$7,000
4.	Accounting staff salaries$41,000
5.	Drum stands (1,000 stands purchased)$34,000
6.	Rent cost of equipment for sales staff$24,000
7.	Upper management salaries$210,000
8.	Annual flat fee for factory maintenance service$21,000
9.	Sales commissions$18 per unit
10.	Machinery depreciation, straight-line$37,000

Problem 18-1A Part 1

Required: 1. Classify each cost and its amount as (a) either variable or fixed and (b) either product or period. (The first cost is completed as an example.)

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 $528 each.

	Costs
1.	Plastic for casing$23,000
2.	Wages of assembly workers$83,000
3.	Property taxes on factory$7,000
4.	Accounting staff salaries$41,000
5.	Drum stands (1,000 stands purchased)$34,000
6.	Rent cost of equipment for sales staff$24,000
7.	Upper management salaries$210,000
8.	Annual flat fee for factory maintenance service$21,000
9.	Sales commissions$18 per unit
10.	Machinery depreciation, straight-line$37,000

Problem 18-1A Part 2

2. Calculate the manufacturing cost per drum set.

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

The following calendar year-end information is taken from the December 31, 2017, adjusted trial balance and other records of Leone Company.

Advertising expense	$	34,300		Direct labor	$	674,200
Depreciation expenseOffice equipment		9,800		Income taxes expense		289,900
Depreciation expenseSelling equipment		9,800		Indirect labor		56,000
Depreciation expenseFactory equipment		35,300		Miscellaneous production costs		10,900
Factory supervision		131,500		Office salaries expense		74,000
Factory supplies used		8,400		Raw materials purchases		930,000
Factory utilities		40,000		Rent expenseOffice space		25,000
Inventories				Rent expenseSelling space		29,200
Raw materials, December 31, 2016		167,600		Rent expenseFactory building		82,400
Raw materials, December 31, 2017		185,000		Maintenance expenseFactory equipment		38,400
Work in process, December 31, 2016		17,000		Sales		4,466,700
Work in process, December 31, 2017		23,200		Sales salaries expense		396,600
Finished goods, December 31, 2016		162,900
Finished goods, December 31, 2017		141,200

Problem 18-3A Part 2

2. Prepare the companys 2017 income statement that reports separate categories for (a) selling expenses and (b) general and administrative expenses.