A review of the accounting records of Spiller Manufactory indicated that the com
ID: 2460196 • Letter: A
Question
A review of the accounting records of Spiller Manufactory indicated that the company incurred following payroll costs during the month of september. 1 Salary of the company president $40,000 2 Salary of the vice president ot mamitactonng-$25,000 3 Salary of the chiet financial ofkeer $70,000 4 Salary of the vice president ot marfcelng $18 000 5 Salanes ol middle managers (department heads, producton supervisors) m manufacturing plant- $196,000 6 Wages of producton workers $933,000 7 Salaries of administratve secretaries $60 000 8 Salaries of engineers and other personnel responsible lor maintaining production equipment 8 $178,000 9 Commissions paid to sales staf-$252,000 Required a. What amount of payroll cost would be classified as selling. general and adminstravite expense?Explanation / Answer
Salary of Co President $ 40,000.00 Salary of CFO $ 20,000.00 Salary of Vice President Marketing $ 18,000.00 Salary of Administratice Secretaries $ 60,000.00 Commission paid to sales staff $ 252,000.00 Total Selling, general & administrative expense $ 390,000.00 Salary of Co President $ 40,000.00 Salary of CFO $ 20,000.00 Salary of Vice President Marketing $ 18,000.00 Salary of Administratice Secretaries $ 60,000.00 Commission paid to sales staff $ 252,000.00 Salary of Vice President Manufacturing $ 25,000.00 Salary of middle managers $ 195,000.00 Wages of production workers $ 938,000.00 Salary of Engineers $ 178,000.00 Total Payroll Expense $ 1,726,000.00 Units Produced 4000 Sold Units 3600 Payroll expense in COGS : 1726000/4000*3600 $ 1,553,400.00
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