SURVEY OF ACCOUNTING 360DAY CONNECT CAR
5th Edition
ISBN: 9781260591811
Author: Edmonds
Publisher: MCG
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Chapter 10, Problem 6E
Exercise 1-6A Identifying product versus SG&A costs
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 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.
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QUESTION 1: Schedule of Cost of Goods Manufactured: Income Statement.
Richmond Chocolates Limited, a manufacturing Company, produces a single product. The following information has been taken from the company’s production, sales and cost records for the year ended December 31, 2021.
Sales
$ 450,000
Indirect Labour
12,000
Utilities
15,000
Direct Labour
70,000
Depreciation, factory equipment
21,000
Raw materials purchased
165,000
Depreciation, sales equipment
18,000
Insurance expired during the year
4,000
Rent on facilities
50,000
Selling and administrative salaries
32,000
Advertising
75,000
Additional information about the company follows:
Some 60 percent of the utilities costs and 75 percent of the expired insurance apply to factory operations. The remaining amounts apply to selling and administrative activities
Only 80 percent of the rent on facilities apply to factory operations: the remainder applies to…
QUESTION 1: Schedule of Cost of Goods Manufactured: Income Statement.
Richmond Chocolates Limited, a manufacturing Company, produces a single product. The following information has been taken from the
company’s production, sales and cost records for the year ended December 31, 2021.
Sales
$ 450,000
Indirect Labour
12,000
Utilities
15,000
Direct Labour
70,000
Depreciation, factory equipment
21,000
Raw materials purchased
165,000
Depreciation, sales equipment
18,000
Insurance expired during the year
4,000
Rent on facilities
50,000
Selling and administrative salaries
32,000
Advertising
75,000
Additional information about the company follows:
Some 60 percent of the utilities costs and 75 percent of the expired insurance apply to factory operations. The remaining amounts apply to selling and administrative activities
Only 80 percent of the rent on facilities apply to factory operations: the remainder applies to…
QUESTION 1: Schedule of Cost of Goods Manufactured: Income Statement.
Richmond Chocolates Limited, a manufacturing Company, produces a single product. The following information has been taken from the
company’s production, sales and cost records for the year ended December 31, 2021.
Sales
$ 450,000
Indirect Labour
12,000
Utilities
15,000
Direct Labour
70,000
Depreciation, factory equipment
21,000
Raw materials purchased
165,000
Depreciation, sales equipment
18,000
Insurance expired during the year
4,000
Rent on facilities
50,000
Selling and administrative salaries
32,000
Advertising
75,000
Additional information about the company follows:
Some 60 percent of the utilities costs and 75 percent of the expired insurance apply to factory operations. The remaining amounts apply to selling and administrative activities
Only 80 percent of the rent on facilities apply to factory operations: the remainder…
Chapter 10 Solutions
SURVEY OF ACCOUNTING 360DAY CONNECT CAR
Ch. 10 - 1. What are some differences between financial and...Ch. 10 - 2. What does the value-added principle mean as it...Ch. 10 - 4. How does product costing used in financial...Ch. 10 - 5. What does the statement costs can be assets or...Ch. 10 - 6. Why are the salaries of production workers...Ch. 10 - 7. How do product costs affect the financial...Ch. 10 - 8. What is an indirect cost? Provide examples of...Ch. 10 - 9. How does a product cost differ from a selling,...Ch. 10 - 10. Why is cost classification important to...Ch. 10 - 11. What is cost allocation? Give an example of a...
Ch. 10 - 13. What are some of the common ethical conflicts...Ch. 10 - 14. What costs should be considered in determining...Ch. 10 - 15. What is a just-in-time (JIT) inventory system?...Ch. 10 - Prob. 14QCh. 10 - Prob. 15QCh. 10 - Prob. 16QCh. 10 - Prob. 17QCh. 10 - Prob. 18QCh. 10 - Prob. 19QCh. 10 - Prob. 1ECh. 10 - Exercise 1-2A Identifying product versus selling,...Ch. 10 - Prob. 3ECh. 10 - Prob. 4ECh. 10 - Prob. 5ECh. 10 - Exercise 1-6A Identifying product versus SGA costs...Ch. 10 - LO 1-3 Exercise 1-7A Recording product versus SGA...Ch. 10 - Prob. 8ECh. 10 - LO 1-4 Exercise 1-9A Upstream, midstream, and...Ch. 10 - Prob. 10ECh. 10 - Prob. 11ECh. 10 - Prob. 12ECh. 10 - Prob. 13ECh. 10 - Cost of goods manufactured and sold The following...Ch. 10 - Prob. 15ECh. 10 - Exercise 1-14A Using JIT to minimize waste and...Ch. 10 - Prob. 17ECh. 10 - Prob. 18ECh. 10 - Prob. 19ECh. 10 - Prob. 20ECh. 10 - Problem 1-19A Characteristics of financial versus...Ch. 10 - Prob. 22PCh. 10 - Problem 1-21A Effect of product versus period...Ch. 10 - Problem 1-22A Product versus SGA costs The...Ch. 10 - Prob. 25PCh. 10 - Prob. 26PCh. 10 - Prob. 27PCh. 10 - Prob. 28PCh. 10 - Prob. 29PCh. 10 - Prob. 30PCh. 10 - Prob. 31PCh. 10 - Prob. 32PCh. 10 - Prob. 1ATCCh. 10 - Prob. 2ATCCh. 10 - Prob. 3ATCCh. 10 - Prob. 4ATCCh. 10 - Ethical Dilemma Product cost versus selling and...
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