Question
Exercise 10-7 Identifying product versus selling, general, and administrative costs LO 10-2 A review of the accounting records of Spiller Manufacturing indicated that the company
Exercise 10-7 Identifying product versus selling, general, and administrative costs LO 10-2
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$31,500. |
2. | Salary of the vice president of manufacturing$17,000. |
3. | Salary of the chief financial officer$18,100. |
4. | Salary of the vice president of marketing$15,800. |
5. | Salaries of middle managers (department heads, production supervisors) in manufacturing plant$193,000. |
6. | Wages of production workers$931,000. |
7. | Salaries of administrative secretaries$103,000. |
8. | Salaries of engineers and other personnel responsible for maintaining production equipment$176,000. |
9. | Commissions paid to sales staff$248,000. |
Required | |
a. | What amount of payroll cost would be classified as selling, general, and administrative expense? |
b. | Assuming that Spiller made 4,900 units of product and sold 4,165 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.) |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started