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A review of the accounting records of Adams Manufacturing indicated that the company incurred the following payroll costs during t month of March. Assume the company's financial statements are prepared in accordance with GAAP. 1. Salary of the company president-$32,700. 2. Salary of the vice president of manufacturing-$16,000. 3. Salary of the chief financial officer-$18,200. 4. Salary of the vice president of marketing-$14,800. 5. Salaries of middle managers (department heads, production supervisors) in manufacturing plant-$189,000. 6. Wages of production workers-$938,000. 7. Salaries of administrative secretaries-$105,000. 8. Salaries of engineers and other personnel responsible for maintaining production equipment-$174,000. 9. Commissions paid to sales staff-$250,000. Required

A review of the accounting records of Adams Manufacturing indicated that the company incurred the following payroll costs during t month of March. Assume the company's financial statements are prepared in accordance with GAAP. 1. Salary of the company president-$32,700. 2. Salary of the vice president of manufacturing-$16,000. 3. Salary of the chief financial officer-$18,200. 4. Salary of the vice president of marketing-$14,800. 5. Salaries of middle managers (department heads, production supervisors) in manufacturing plant-$189,000. 6. Wages of production workers-$938,000. 7. Salaries of administrative secretaries-$105,000. 8. Salaries of engineers and other personnel responsible for maintaining production equipment-$174,000. 9. Commissions paid to sales staff-$250,000. Required

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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. 1. Salary of the company president-$32,700. 2. Salary of the vice president of manufacturing-$16,000. 3. Salary of the chief financial officer-$18,200. 4. Salary of the vice president of marketing-$14,800. 5. Salaries of middle managers (department heads, production supervisors) in manufacturing plant-$189,000. 6. Wages of production workers-$938,000. 7. Salaries of administrative secretaries-$105,000. 8. Salaries of engineers and other personnel responsible for maintaining production equipment-$174,000. 9. Commissions paid to sales staff-$250,000. Required a. What amount of payroll cost would be classified as SG&A expense? b. Assuming that Adams made 3,200 units of product and sold 2,720 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. b. Payroll cost to be included in SG&A cost Payroll cost to be included in cost of goods sold
Transcribed Image Text: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. 1. Salary of the company president-$32,700. 2. Salary of the vice president of manufacturing-$16,000. 3. Salary of the chief financial officer-$18,200. 4. Salary of the vice president of marketing-$14,800. 5. Salaries of middle managers (department heads, production supervisors) in manufacturing plant-$189,000. 6. Wages of production workers-$938,000. 7. Salaries of administrative secretaries-$105,000. 8. Salaries of engineers and other personnel responsible for maintaining production equipment-$174,000. 9. Commissions paid to sales staff-$250,000. Required a. What amount of payroll cost would be classified as SG&A expense? b. Assuming that Adams made 3,200 units of product and sold 2,720 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. b. Payroll cost to be included in SG&A cost Payroll cost to be included in cost of goods sold
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