Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Question
Chapter 1, Problem 2CMA
To determine
Calculate the product costs and period cost for the last year, and identify the correct answer.
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A review of Plunkett Corporation's accounting records for last year disclosed the following selected
Variable costs
Direct materials used
$ 56,000
Direct labor
$179,100
Manufacturing overhead
$154,000
Selling costs
$108,400
Fixed costs
Manufacturing overhead
$267,000
Selling costs
$121,000
Administrative costs
$235,900
In addition, the company suffered a $27,700 uninsured factory fire loss during the year. What were Plunkett's product costs and period costs for last year
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 company's 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…
A review of the accounting records of Solomon 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-$32,100.
2. Salary of the vice president of manufacturing-$16,200.
3. Salary of the chief financial officer-$17,900.
4. Salary of the vice president of marketing-$16,000.
5. Salaries of middle managers (department heads, production supervisors) in manufacturing plant-$202,000.
6. Wages of production workers-$935,000.
7. Salaries of administrative secretaries-$104,000.
8. Salaries of engineers and other personnel responsible for maintaining production equipment-$172,000.
9. Commissions paid to sales staff-$243,000.
Required
a. What amount of payroll cost would be classified as SG&A expense?
b. Assuming that Solomon made 4,900 units of product and sold 4,165 of them during the month of March, determine the amount of
payroll…
Chapter 1 Solutions
Managerial Accounting
Ch. 1 - Prob. 1DQCh. 1 - Prob. 2DQCh. 1 - What manufacturing cost term is used to describe...Ch. 1 - Distinguish between prime costs and conversion...Ch. 1 - What is the difference between a product cost and...Ch. 1 - Name the three inventory accounts for a...Ch. 1 - In what order should the three inventories of a...Ch. 1 - What are the three categories of manufacturing...Ch. 1 - How do the manufacturing costs incurred during a...Ch. 1 - How does the Cost of goods sold section of the...
Ch. 1 - Management process Three phases of the management...Ch. 1 - Prob. 2BECh. 1 - Prime and conversion costs Identify the following...Ch. 1 - Product and period costs Identify the following...Ch. 1 - Cost of goods sold, cost of goods manufactured...Ch. 1 - Jakes Cabins is a small motel chain with locations...Ch. 1 - Indicate whether each of the following costs of an...Ch. 1 - Indicate whether the following costs of Procter ...Ch. 1 - Prob. 3ECh. 1 - For apparel manufacturer Abercrombie Fitch, Inc....Ch. 1 - From the choices presented in parentheses, choose...Ch. 1 - Prob. 6ECh. 1 - Classifying costs In a service company A partial...Ch. 1 - Classifying costs The following is a manufacturing...Ch. 1 - Financial statements of a manufacturing firm The...Ch. 1 - Manufacturing company balance sheet Partial...Ch. 1 - Cost of direct materials used in production for a...Ch. 1 - Prob. 12ECh. 1 - Cost of goods manufactured for a manufacturing...Ch. 1 - Income statement for a manufacturing company Two...Ch. 1 - Statement of cost of goods manufactured for a...Ch. 1 - Cost of goods sold, profit margin, and net income...Ch. 1 - Cost flow relationships The following information...Ch. 1 - The following is a list of costs that were...Ch. 1 - The following is a list of costs incurred by...Ch. 1 - A partial list of Foothills Medical Centers costs...Ch. 1 - Manufacturing income statement, statement of cost...Ch. 1 - Statement of cost of goods manufactured and income...Ch. 1 - Prob. 1PBCh. 1 - The following is a list of costs incurred by...Ch. 1 - A partial list of The Grand Hotels costs follows:...Ch. 1 - Several items are omitted from the income...Ch. 1 - Statement of cost of goods manufactured and income...Ch. 1 - Comfort Plus, Inc., has a hotel with 300 rooms in...Ch. 1 - Prob. 2MADCh. 1 - Comparing occupancy for two hotels Sunrise Suites...Ch. 1 - Prob. 4MADCh. 1 - Prob. 5MADCh. 1 - Prob. 1TIFCh. 1 - Communication Todd Johnson is the Vice President...Ch. 1 - For each of the following managers, describe how...Ch. 1 - The following situations describe scenarios that...Ch. 1 - Geek Chic Company provides computer repair...Ch. 1 - Which of the following items would not be...Ch. 1 - Prob. 2CMACh. 1 - A firm has 100,000 in direct materials costs,...Ch. 1 - In practice, items such as wood screws and glue...
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