Some math/accounting help please? :)?

[jung-hwa75]

Well this is kinda of accounting homework, but I believe you use math to figure it out...

Listed here are the total costs associated with the 2011 production of 1,000 drum sets manufactured by NeatBeat. The drum sets sell for $466 each. (Assume there is no ending inventory in the year 2011.)

1. Plastic for casing—$22,000
2. Wages of assembly workers—$85,000.
3. Property taxes on factory—$5,000
4. Accounting staff salaries—$33,000
5. Drum stands (1,000 stands outsourced)—$40,000
6. Rent cost of equipment for sales staff—$12,000
7. Upper management salaries—$140,000
8. Annual flat fee for maintenance service—$22,000
9. Sales commissions—$21 per unit (so $21,000 for 1,000 units)
10. Machinery depreciation—$44,000

QUESTION: Compute the manufacturing cost per drum set

Ok you dont have to find the answer for me if you dont want to, but can you tell me how so I know what to ...what not...thanks I need the RIGHT answer ...whoever helps me get to the right answer will get 10 points! Thank you :)

[ricki]

It depends how you define "manufacturing costs", and this surely depends upon the company, or the accounting system in use.

At first sight, the direct manufacturing costs are items 1, 2, 5 and 10, and maybe item 8. So just add those up and divide by 1000.

Items 3, 4, 6, 7 and 9 are not manufacturing costs, in that they are not essential to the production of the drum kits.

But, as I said, different people might have different ways of defining or dealing with it.

[delton]

Welp. You add up everything except for:

Upper mgmt salaries
Accounting Staff salaries
Rent cost of equipment for sales staff

I calculated that you get $218 at the end..that is when you divide by 1,000