A review of the accounting records of Spiller Manufacturing indicated that the c

Question

A review of the accounting records of Spiller Manufacturing indicated that the company incurred the following payroll costs during the month of September. 1. Salary of the company president—$40,000. 2. Salary of the vice president of manufacturing—$25,000. 3. Salary of the chief financial officer—$20,000. 4. Salary of the vice president of marketing—$18,000. 5. Salaries of middle managers (department heads, production supervisors) in manufacturing plant—$196,000. 6. Wages of production workers—$938,000. 7. Salaries of administrative secretaries—$60,000. 8. Salaries of engineers and other personnel responsible for maintaining production equipment—$178,000. 9. Commissions paid to sales staff—$252,000.

a.

What amount of payroll cost would be classified as selling, general, and administrative expense?

b.

Assuming that Spiller made 4,000 units of product and sold 3,600 of them during the month of September, determine the amount of payroll cost that would be included in cost of goods sold. (Do not round intermediate calculations.)

What amount of payroll cost would be classified as selling, general, and administrative expense?

b.

Assuming that Spiller made 4,000 units of product and sold 3,600 of them during the month of September, determine the amount of payroll cost that would be included in cost of goods sold. (Do not round intermediate calculations.)

Explanation / Answer

Ans a Payroll classified as selling,general &overhead Salary Of Company President $40,000 Salary of Chief Financial officer $20,000 Salary of Vice Precident Marketing 18000 Salaries of administrative Secretaries 60000 Commissions paid to sales staff 252000 Total $390,000 Salary which can be included in COGS Salary of Vice Precident Manufacturing (manufacturing overhead) $25,000 Salaries of Middle manger at manufacturing plant (Manu. Overhead) $196,000 Wages of Production Workers(Direct Labour) 938000 salariesof engineer and other personnel maintaing production equipment (manuf. Overhead) 178000 Total $1,337,000 No. of units produced $4,000 Cost per unit 334.25 3600 units are sold so COGS will include 1203300 Ans

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.