Question 1:

A review of the accounting records of Baird 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$75,000.

2. Salary of the vice president of manufacturing$50,000.

3. Salary of the chief financial officer$42,000.

4. Salary of the vice president of marketing$40,000.

Salaries of middle managers (department heads, production supervisors) in manufacturing plant$147,000.

Wages of production workers$703,500.

Salaries of administrative secretaries$60,000.

Salaries of engineers and other personnel responsible for maintaining production equipment$133,500.

Commissions paid to sales staff$146,000.

Required

a. What amount of payroll cost would be classified as SG&A expense?

b. Assuming that Baird made 5,000 units of product and sold 4,000 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.)

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Question 2:

Franklin Manufacturing Company began operations on January 1. During the year, it started and completed 1,730 units of product. The financial statements are prepared in accordance with GAAP. The company incurred the following costs:

1. Raw materials purchased and used$3,190.

2. Wages of production workers$3,520.

3. Salaries of administrative and sales personnel$1,965.

4. Depreciation on manufacturing equipment$5,227.

5. Depreciation on administrative equipment$1,760.

Franklin sold 1,200 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.)

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Question 3:

The following information pertains to Flaxman Manufacturing Company for April. Assume actual overhead equaled applied overhead.

Required

a. Prepare a schedule of cost of goods manufactured and sold.

Left column answer options:

- Beginning finished goods inventory

- Beginning raw materials inventory

- Beginning work in process inventory

- Direct labor

- Ending finished goods inventory

- Ending raw materials inventory

- Ending work in process inventory

- Manufacturing overhead

- Purchases

Required

b. Calculate the amount of gross margin on the income statement.

\begin{tabular}{|l|l|l|} \hline & & \\ \hline a. & Payroll cost to be included in SG\&A cost & \\ \hline b. & Payroll cost to be included in cost of goods sold & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|} \hline & & \\ \hline a. & Total product cost & \\ \hline b. & Total cost of ending inventory & \\ \hline c. & Total cost of goods sold & \\ \hline \end{tabular} April 1 Inventory balances RawmaterialsWorkinprocessFinishedgoods$123,700119,80076,700 April 30 Inventory balances Raw materials $85,600 Work in process 146,500 Finished goods 81,200 During April Costs of raw materials purchased $119,100 Costs of direct labor 101,700 Costs of manufacturing overhead 61,300 Sales revenues 354,000 Complete this question by entering your answers in the tabs below. Prepare a schedule of cost of goods manufactured and sold. Complete this question by entering your answers in the tabs below. Calculate the amount of gross margin on the income statement