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 follow ing payroll costs during the month of September. 1. Salary of the company president -$31,800 2. Salary of the vice president of manufacturing-$16,700 3. Salary of the chief financial officer-$17,900 4. Salary of the vice president of marketing $14,800 5. Salaries of middle managers (department heads, production supervisors) in manufacturing plant-$202,000 6. Wages of production workers-$933,000 7. Salaries of administrative secretaries-$111,000 8. Salaries of engineers and other personnel responsible for maintaining production equipment 9. Commissions paid to sales staff-$251,000 $171,000 Required a. What amount of payroll cost would be classified as selling, general, and administrative expense? ayroll cost

Explanation / Answer

Payroll cost to be included in selling ,general and administrative cost .

b) Total payroll cost included in manufacturing /product cost = 1,322,700      [16700+202000+933000+171000]

cost of goods sold = 1322700 * 3150 /4500 = $ 925,890

salary of company president 31800 salary of CFO 17900 salary of VP of marketing 14800 salaries of administrative secretaries 111000 commissions to sales staff 251000 Total 426500

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