Question
[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
[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.
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