Question

Check my work A review of the accounting records of Jordan 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. points eBook 1. Salary of the company president-$31,300. 2. Salary of the vice president of manufacturing-$16,500. 3. Salary of the chief financial officer-$18,500. 4. Salary of the vice president of marketing-$14,600. 5. Salaries of middle managers (department heads, production supervisors) in manufacturing plant-$206,000. 6. Wages of production workers-$945.000. 7. Salaries of administrative secretarles-$105,000. 8. Salaries of engineers and other personnel responsible for maintaining production equipment-$169,000. 9. Commissions pald to sales staff-$255,000. Print Required a. What amount of payroll cost would be classified as SG&A expense? b. Assuming that Jordan made 3,600 units of product and sold 2.880 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.) References a. Payroll cost to be included in SG&A cost b. Payroll cost to be included in cost of goods sold

Answer 1

a) Payroll cost to be included in SG&A cost
salary of company president	31300
salary of chief financial officer	18500
salary of vice president of marketing	14600
salary of administrative secretaries	105000
commission paid to sale staff	255000
Payroll cost included in SG&A cost	424400

b) Payroll cost to be included in cost of goods sold
salary of vice president of manufacturing	16500
salary of middle manager	206000
wages of production worker	945000
salaries of engineers & other personnel	169000
total production cost	1336500
Payroll cost included in Cost of goods sold
(1336500/3600*2880)	1069200

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