A review of the accounting records of Fanning Manufacturing indicated that the company incurred the following payroll costs during the month of March. Assume the company's financial statements are prepared in accordance with GAAP. 1. Salary of the company president-$32,100. 2. Salary of the vice president of manufacturing$16,400. 3. Salary of the chief financial officer$19,000. 4. Salary of the vice president of marketing$16,100. 5. Salaries of middle managers (department heads, production supervisors) in manufacturing plant-$203,000. 6. Wages of production workers-$939,000. 7. Salaries of administrative secretaries$104,000. 8. Salaries of engineers and other personnel responsible for maintaining production equipment-$177,000. 9. Commissions paid to sales staff-$246,000. Required a. What amount of payroll cost would be classified as SG&A expense? b. Assuming that Fanning made 4,800 units of product and sold 4,320 of them during the month of March, determine the amount of payroll cost that would be included in cost of goods sold. (Do not round intermediate calculations.) a. Payroll cost to be included in SG&A cost Payroll cost to be included in cost of goods sold b. Munoz Manufacturing Company began operations on January 1. During the year, it started and completed 1,690 units of product. The financial statements are prepared in accordance with GAAP. The company incurred the following costs: 1. Raw materials purchased and used$3,210. 2. Wages of production workers$3,530. 3. Salaries of administrative and sales personnel$1,900. 4. Depreciation on manufacturing equipment-$4,752. 5. Depreciation on administrative equipment_$1,785. Munoz sold 1,100 units of product. Required a. Determine the total product cost for the year. b. Determine the total cost of the ending inventory. (Do not round intermediate calculations.) c. Determine the total of cost of goods sold. (Do not round intermediate calculations.) a. Total product cost Total cost of ending inventory Total cost of goods sold Required Use the following table to classify each cost as a product cost or an SG&A cost. Also indicate whether the cost would be recorded as an asset or an expense. Assume product cost is defined by generally accepted accounting principles. The first item is shown as an example. (Select Neither if none of the categories apply.) Product/SG&A Asset/Expense Asset Product cost Cost Category Wages of production workers Advertising costs Promotion costs Production supplies i n Depreciation on administration building Depreciation on manufacturing equipment Research and development costs Cost to set up manufacturing equipment Utilities used in manufacturing facility Cars for sales staff Real estate tax levied on a factory General office supplies Raw materials used in the manufacturing process Cost to rent office equipment Becky Shelton, a teacher at Kemp Middle School, is in charge of ordering the T-shirts to be sold for the school's annual fund-raising project. The T-shirts are printed with a special Kemp School logo. In some years, the supply of T-shirts has been insufficient to satisfy the number of sales orders. In other years, T-shirts have been left over. Excess T-shirts are normally donated to some charitable organization. T-shirts cost the school $7 each and are normally sold for $14 each. Ms. Shelton has decided to order 850 shirts. Required a. If the school receives actual sales orders for 775 shirts, what amount of profit will the school earn? What is the cost of waste due to excess inventory? b. If the school receives actual sales orders for 870 shirts, what amount of profit will the school earn? What amount of opportunity cost will the school incur? a. Profit Waste due to excess inventory Profit Opportunity cost