chapter 10 # 3

Exercise 10-6A (Algo) Identifying product versus SG\&A costs LO 10-2, 10-3 A review of the accounting records of Jordan 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. Selary of the compony president $31,000. 2. Salary of the vice president of manufacturing $16,800. 4. Salary of the vice president of makketing $15,700. 5. Salaries of midile managers (department heads, production supervisors) hn manufacturing plant- $188.000. 6. Wages of production workers $928,000. 7. Salaries of administrative secretaries 511.000. 8. Solaries of engineers and other personnel responsible for maintaining production equipment- $170.000. 9. Commissions pald to sales staff $249.000. Required a. What amount of poyroll cost would be classified as SG\&A expense? b. Assuming that Jardan made 4,200 units of product and sold 3,570 of them diuing the month of March, determine the amount of payroll cost thet would be included in cost of goods sold. (Do not round intermediate calculations)