meganwintergirl
25.03.2020 •
Business
A review of the accounting records of Perez Manufacturing indicated that the company incurred the following payroll costs during the month of March. Assume the companies 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.
5. Salaries of middle managers (department heads, production supervisors) in manufacturing plant—$147,000.
6. Wages of production workers—$703,500.
7. Salaries of administrative secretaries—$60,000.
8. Salaries of engineers and other personnel responsible for maintaining production equipment—$133,500.
9. 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.)
a. Payroll cost to be included in SG&A cost.
b. Payroll cost to be included in cost of goods sold.
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Ответ:
SG&A expense = $363,000
Payroll cost which is included in Cost of goods sold = $827,200
Explanation:
The computation of SG&A and cost of goods sold
a.
Salary of the company president = $75,000
Add: Chief financial officer salary = $42,000
Add: Vice president of marketing salary = $40,000
Add: Administrative secretaries salaries = $60,000
Add: Commissions paid to sales staff = $146,000
SG&A expense = $363,000
b.
Vice president of marketing salary= $50,000
Add: Middle managers salaries = $147,000
Add: Wages of production workers = $703,500
Add: Engineers and other personnel responsible salaries= $133,500
Total = $1,034,000
Payroll cost which is included in Cost of goods sold
= $1,034,000 × 4000 ÷ 5000
= $827,200
Ответ: