Question

Problem 10-1 oll costs during the month of August. of the esident 118440 $ 98,280 1 234 1,234,800 5,909,400 705,600 Salaries of administrative secretaries $1.121.400 1.587.600 REQUIRED that Pike made suming that Pike sold

Answer 1

a. payroll cost classified as general, administrative and selling expense:

salary of the company president	$201,600
salary of the cheif financial officer	$118,440
salary of vice president marketing	$98,280
salaries of administrative secretaries	$705,600
commissions paid to sales staff	$1,587,600
TOtal	$2,711,520

b.first let us know the payroll expenses in total product cost:

salary of vice president manufacturing	$100,800
salaries of middle managers in manufacturing plant	$1,234,800
wages of production workers	$5,909,400
salaries of engineers and other personnel responsible for maintaining production equipment	$1,121,400
Total	$8,366,400

now, only 16,200 goods are sold out of 18,000 produced.

=>payroll cost included in cost of goods sold = $8,366,400 * 16,200 / 18,000 =>$7,529,760.