A review of the accounting records of Stuart Manufacturing indicated that the company incurred the following payroll costs during themonth of March. Assume the company's financial statements are prepared in accordance with GAAP.1. Salary of the company president-$31,200.2. Salary of the vice president of manufacturing-$16,600.3. Salary of the chlef financial officer-$17,900.4. Salary of the vice president of marketing-$15,900.5. Salaries of middle managers (department heads, production supervisors) in manufacturing plant-$194,000.6. Wages of production workers-$937,000.7. Salaries of administrative personnel-$105,000.8. Salaries of engineers and other personnel responsible for maintaining production equipment-$173,000.9. Commissions paid to sales staff-$252,000.Requireda. What amount of payroll cost would be classified as SG&A (selling, general, and administrative) expense?b. Assuming that Stuart made 3,600 units of product and sold 3,240 of them during the month of March, determine the amount ofpayroll 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. Payroll cost to be included in cost of goods sold

Lets understand the basics.Selling, General & Administrative Expense are those which are not…

Answered: A review of the accounting records of…

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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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…
1. Purchased $75,180 in materials on account. Check my work 2. Issued $2,100 in supplies from the materials inventory to the production department. 3. Paid for the materials purchased in transaction (1) 4. Issued $35,700 in direct materials to the production department. 5. Incurred wage costs of $58,800, which were debited to Payroll, a temporary account. Of this amount, $18,900 was withheld for payroll taxes and credited to Payroll Taxes Payable. The remaining $39,900 was paid in cash to the employees. See transactions (6) and (7) for additional information about Payroll. 5. Recognized $29,400 in fringe benefit costs, incurred as a result of the wages paid in (5). This $29,400 was debited to Payroll and credited to Fringe Benefits Payable 7. Analyzed the Payroll account and determined that 60 percent represented direct labor; 30 percent, indirect manufacturing labor, and 10 percent, administrative and marketing costs. 8. Paid for utilities, power, equipment maintenance, and other…
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Buckhorn Company's accounting records noted the following amounts for company payroll costs. What amount of payroll would be categorized as a period cost? Payroll Costs: Marketing director salary Factory manager salary Commissions paid to sales staff Administrative personnel wages Wages of production workers Multiple Choice C $302,000 $327,000 $615,000 $376,000 $164,000 $99,000 $74,000 $64,000 $214,000
Rooney Manufacturing Company began operations on January 1. During the year, it started and completed 1,700 units of product. The financial statements are prepared in accordance with GAAP. The company incurred the following costs: 1. Raw materials purchased and used-$3,190. 2. Wages of production workers-$3,560. 3. Salaries of administrative and sales personnel-$1,975, 4. Depreciation on manufacturing equipment-$4,810. 5. Depreciation on administrative equipment-$1,755. Rooney sold 1,110 units of product. Required a. Determine the total product cost for the year. b. Determine the total cost of the ending inventory. Note: Do not round intermediate calculations. c. Determine the total of cost of goods sold.. Note: Do not round intermediate calculations. a. Total product cost b. Total cost of ending inventory e. Total cost of goods sold $ $ 11,560 4,012
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,…
The following payroll liability accounts are included in the ledger of Wildhorse Company on January 1. FICA Taxes Payable $760.00 Federal Income Taxes Payable 1,204.60 State Income Taxes Payable 108.95 Federal Unemployment Taxes Payable 288.95 State Unemployment Taxes Payable 1,954.40 Union Dues Payable 870.00 In January, the following transactions occurred. Jan. 10 Sent check for $870.00 to union treasurer for union dues. 12 Sent check for $1,964.60 for FICA taxes and federal income taxes withheld. 17 Paid state income taxes withheld from employees. 20 Paid federal and state unemployment taxes. At January 31, the company completed the monthly payroll register, which shows salaries and wages $55,000. The company makes an entry for employer payroll taxes: FICA taxes 7.65% (the 7.65% FICA tax rate consists of the Social Security tax rate of 6.2% on salaries and wages up to $55,000 and the Medicare tax rate of 1.45% on…
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Sandler Company completed the following two transactions. The annual accounting period endsDecember 31.a. On December 31, calculated the payroll, which indicates gross earnings for wages ($260,000),payroll deductions for income tax ($28,000), payroll deductions for FICA ($20,000), payrolldeductions for United Way ($4,000), employer contributions for FICA (matching), and stateand federal unemployment taxes ($2,000). Employees were paid in cash, but payments for thecorresponding payroll deductions have not been made and employer taxes have not yet beenrecorded.b. Collected rent revenue of $1,500 on December 10 for office space that Sandler rented toanother business. The rent collected was for 30 days from December 11 to January 10 and wascredited in full to Unearned Revenue.Required:1. Give the entries required on December 31 to record payroll.2. Give ( a ) the journal entry for the collection of rent on December 10 and ( b ) the adjusting journal entry on December 31.3. Show how any…
The following data summarizes in part the results of operations for 2021 of Diamond Company. Of the total cost of goods manufactured for 2021, 38% was for materials used, 30% for direct labor, and 32% for manufacturing overhead. During 2021, the company paid 90% of the materials purchased, leaving P293,000 of unpaid invoices for materials at year end.The company commenced 2021 operations with materials inventory of P421,000. All materials were purchased FOB company’s plant. The company disbursed P2,101,500 for direct labor during 2021. As of December 31, 2021, the accrued liability for direct labor amounted to P144,000, which was twice as much as last year’s accrual. The inventory of finished goods on December 31, 2021, was 10% of the cost of the units finished during the year, and goods in process on that date were one-half the finished goods inventory. This year’s finished goods inventory was 150% of last year. There are no in process last year. The manufacturing overhead, except for…
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A review of the accounting records of Finch 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—$32,300.2. Salary of the vice president of manufacturing—$16,700.3. Salary of the chief financial officer—$19,000.4. Salary of the vice president of marketing—$14,900.5. Salaries of middle managers (department heads, production supervisors) in manufacturing plant—$189,000.6. Wages of production workers—$929,000.7. Salaries of administrative secretaries—$105,000.8. Salaries of engineers and other personnel responsible for maintaining production equipment—$183,000.9. Commissions paid to sales staff—$243,000. Requireda. What amount of payroll cost would be classified as SG&A expense?b. Assuming that Finch made 3,400 units of product and sold 3,060 of them during the month of March, determine the amount of payroll cost…

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