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A review of the accounting records of Adams 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. Salary of the company president$32,800.
Salary of the vice president of manufacturing$16,700. Salary of the chief financial
officer$18,700. Salary of the vice president of marketing$16,400. Salaries of middle managers
(department heads, production supervisors) in manufacturing plant$190,000. Wages of
production workers$936,000. Salaries of administrative secretaries$104,000. Salaries of
engineers and other personnel responsible for maintaining production equipment$174,000.
Commissions paid to sales staff$244,000.
Required What amount of payroll cost would be classified as SG&A expense? Assuming that
Adams made 4,600 units of product and sold 4,140 of them during the month of March,
determine the amount of payroll cost that would be included in cost of goods sold.

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A review of the accounting records of Adams Manufacturing indicated .pdf

  • 1. A review of the accounting records of Adams 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. Salary of the company president$32,800. Salary of the vice president of manufacturing$16,700. Salary of the chief financial officer$18,700. Salary of the vice president of marketing$16,400. Salaries of middle managers (department heads, production supervisors) in manufacturing plant$190,000. Wages of production workers$936,000. Salaries of administrative secretaries$104,000. Salaries of engineers and other personnel responsible for maintaining production equipment$174,000. Commissions paid to sales staff$244,000. Required What amount of payroll cost would be classified as SG&A expense? Assuming that Adams made 4,600 units of product and sold 4,140 of them during the month of March, determine the amount of payroll cost that would be included in cost of goods sold.