Information from Book (Financial Accounting 10e by Needles and Powers):

Global Company was formed on January 1, 2010, and began constructing a new plant. At the end of 2010, its auditor discovered that all expenditures involving long-term assets had been debited to an account called Fixed Assets. An analysis of the Fixed Assets account, which had a year-end balance of $2,659,732, disclosed that it contained the following items:

Cost of Land (320,600)

Surveying Costs (4,100)

Transfer of title and other fees required by the county (920)

Broker's fees for land (21,144)

Attorney's fees associated with land acquisition (7048)

Cost of removing timber from land (49,600)

Cost of grading land (4,200)

Cost of digging building foundation (35,100)

Architect's fee for building and land improvements - 80 % building (67,200)

Cost of building construction (715,000)

Cost of Sidewalks (11,400)

Cost of Parking Lots (54,400)

Cost of lighting for grounds (80,300)

Cost of landscaping (11,800)

Cost of machinery (993,000)

Shipping cost on Machinery (55,300)

Cost of installing machinery (176,200)

Cost of testing machinery (21,600)

Cost of changes to building to comply with safety (12,540)

Cost of repairing building that was damaged in installation of machinery (8,900)

Cost of medical bill for injury recieved by employee installing machinery (2,560)

Cost of water damage to building during rains before opening plant for operation (6,820)

Account Balance (2,659,732)

During the construction period, two of Global's supervisors devoted full time to the construction project. Their annual salaries were $51,000 and $39,000, respectively. They spent two months on the purchase and preparation of the land, six months on the construction of the building (approximately one-sixth of which was devoted to improvements on the grounds), and one month on machinery installation. When the plant began operation on October 1, the supervisors returned to their regular duties. Their salaries were debited to Factory Salaries Expense.

Question:

Prepare a schedule with the following column headings: Land, Land Improvements, Buildings, Machinery, and Expense. Place each above the expenditure in the appropriate column. Negative amounts should be shown in parentheses. Total the columns.

Note:

I have already prepared a schedule containing the expenditures listed in the book, except for the Administrative/Factory Salaries Expense. The task here is to take those annual salary amounts (which have been initially recorded as expense), and determine what proportion of those costs, if any, should be allocated to the major asset categories described in that problem. Then, any supervisor salary costs which are not allocated to any particular asset would just be expensed.

Please provide a complete solution to how to calculate the Administrative/Factory Salaries Expense along with an explanation to receive full credit.