A review of the accounting records of Benson 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-$31,400. 2. Salary of the vice president of manufacturing-$15,100. 3. Salary of the chief financial officer-$17,900. 4. Salary of the vice president of marketing-$14,800. 5. Salaries of middle managers (department heads, production supervisors) in manufacturing plant-$186,000. 6. Wages of production workers $933,000. 7. Salaries of administrative personnel-$106,000. 8. Salaries of engineers and other personnel responsible for maintaining production equipment-$171,000. 9. Commissions paid to sales staff-$261,000. Required a. What amount of payroll cost would be classified as SG&A (selling, general, and administrative) expense? b. Assuming that Benson made 3,100 units of product and sold 2,170 of them during the month of March, determine the amount of payroll cost that would be included in cost of goods sold. Note: Do not round intermediate calculations. a. Payroll cost to be included in SG&A cost b. Payroll cost to be included in cost of goods sold

A review of the accounting records of Benson 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-$31,400. 2. Salary of the vice president of manufacturing-$15,100. 3. Salary of the chief financial officer-$17,900. 4. Salary of the vice president of marketing-$14,800. 5. Salaries of middle managers (department heads, production supervisors) in manufacturing plant-$186,000. 6. Wages of production workers $933,000. 7. Salaries of administrative personnel-$106,000. 8. Salaries of engineers and other personnel responsible for maintaining production equipment-$171,000. 9. Commissions paid to sales staff-$261,000. Required a. What amount of payroll cost would be classified as SG&A (selling, general, and administrative) expense? b. Assuming that Benson made 3,100 units of product and sold 2,170 of them during the month of March, determine the amount of payroll cost that would be included in cost of goods sold. Note: Do not round intermediate calculations. a. Payroll cost to be included in SG&A cost b. Payroll cost to be included in cost of goods sold

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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Write the journal entry of numbers 1 to 4
XYZ, a manufacturing Corporation, has provided the following data for the month of July. The balance in the Work in Process inventory account was Rs. 30,000 at the beginning of the month and Rs. 15,000 at the end of the month. During the month, the Corporation incurred direct materials cost of Rs. 60,000 and direct labor cost of Rs. 25,000. The actual manufacturing overhead cost incurred was Rs. 62,000. The manufacturing overhead cost applied to Work in Process was Rs. 61,000. The cost of goods manufactured for July was?
appears on the company's records. Materials inventory, June 30 Work-in-process inventory, June 30 Finished goods inventory, June 30 Cost of goods sold through June 30 Accounts payable (materials suppliers), June 30 Manufacturing overhead through June 30 Payroll payable, June 30 Withholding and other payroll liabilities, June 30 Overhead applied through June 30 A count of the inventories on hand July 31 shows the following: $ 42,900 ? 40,400 ● Manufacturing overhead incurred through July was $225,900. • Cost of goods sold through July 31 was $408,200. • Indirect materials cost during July was $3,300. • Overhead during July was underapplied by $2,500. Materials inventory Work-in-process inventory Finished goods inventory Interviews with various plant administrative employees August 1 reveal some additional information: • The company currently owes materials suppliers $53,000. • The company paid suppliers $39,200 cash during July. ● Plant payroll during July totaled $82,900, of which…
The accounts of Tim Tam Inc. showed the following Debit balances at the beginning of December: Account Debit Raw Materials Inventory $59,000 Work-in-Process Inventory 75,000 Finished Goods Inventory 30,000 Manufacturing Overhead 24,000 The following transactions took place during the month: December 2: Assigned direct materials $39,000 and indirect materials $6,000 to production. December 15: Incurred $5,000 and $4,000 toward factory's direct labor costs and indirect labor costs, respectively. What should be the balance in the Manufacturing overhead account following these transactions? Group of answer choices $69,000 $79,000 $119,000 $34,000
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The following data are taken from the general ledger and other records of Du-sik Manufacturing on January 31, the end of the first month of operations in the current fiscal year: Sales - 75,000; Materials inventory (January 1) - 25,000; Work in process inventory (January 1) - 24,000; Finished goods inventory (January 1) 32,000; Materials Purchased - 21,000; Direct labor cost - 18,000; Factory overhead (including 1,000 of indirect materials used and 3,000 of indirect labor cost) - 12,000; Selling and Administrative expenses - 10,000; Inventories at January 31: Materials - 22,000; Work in Process - 20,000; Finished Goods - 30,000. How much is the net income? * Your answer
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JOURNAL ENTRY
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The following data are taken from the general ledger and other records of Du-sik Manufacturing on January 31, the end of the first month of operations in the current fiscal year: Sales - 75,000; Materials inventory (January 1) - 25,000; Work in process inventory (January 1) - 24,000; Finished goods inventory (January 1) - 32,000; Materials Purchased - 21,000; Direct labor cost - 18,000; Factory overhead (including 1,000 of indirect materials used and 3,000 of indirect labor cost) - 12,000; Selling and Administrative expenses - 10,000; Inventories at January 31: Materials - 22,000; Work in Process - 20,000; Finished Goods - 30,000. Compute the Prime cost
Messinger Manufacturing Company had the following account balances for the quarter ending March 31, unless otherwise noted: Work-in-process inventory (January 1) $ 140,400 Work-in-process inventory (March 31) 171,000 Finished goods inventory (January 1) 540,000 Finished goods inventory (March 31) 510,000 Direct materials used 378,000 Indirect materials used 84,000 Direct manufacturing labor 480,000 Indirect manufacturing labor 186,000 Property taxes on manufacturing plant building 28,800 Salespersons' company vehicle costs 12,000 Depreciation of manufacturing equipment 264,000 Depreciation of office equipment 123,600 Miscellaneous plant overhead 135,000 Plant utilities 92,400 General office expenses 305,400 Marketing distribution costs 30,000 Required: Prepare a cost of goods manufactured schedule for the quarter. Prepare a cost of goods sold schedule for the quarter.