5th Edition

ISBN: 9781264010653

Author: Edmonds

Publisher: MCGRAW-HILL HIGHER EDUCATION

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Textbook Question

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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Chapter 10, Problem 5E

Chapter 10, Problem 7E

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Chapter 10 Solutions

SURVEY OF ACCOUNTING(LL)>CUSTOM PKG.<

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. 14Q Ch. 10 - Prob. 15Q Ch. 10 - Prob. 16Q Ch. 10 - Prob. 17Q Ch. 10 - Prob. 18Q Ch. 10 - Prob. 19Q Ch. 10 - Prob. 1E Ch. 10 - Exercise 1-2A Identifying product versus selling,...Ch. 10 - Prob. 3E Ch. 10 - Prob. 4E Ch. 10 - Prob. 5E Ch. 10 - Exercise 1-6A Identifying product versus SGA costs...Ch. 10 - LO 1-3 Exercise 1-7A Recording product versus SGA...Ch. 10 - Prob. 8E Ch. 10 - LO 1-4 Exercise 1-9A Upstream, midstream, and...Ch. 10 - Prob. 10E Ch. 10 - Prob. 11E Ch. 10 - Prob. 12E Ch. 10 - Prob. 13E Ch. 10 - Cost of goods manufactured and sold The following...Ch. 10 - Prob. 15E Ch. 10 - Exercise 1-14A Using JIT to minimize waste and...Ch. 10 - Prob. 17E Ch. 10 - Prob. 18E Ch. 10 - Prob. 19E Ch. 10 - Prob. 20E Ch. 10 - Problem 1-19A Characteristics of financial versus...Ch. 10 - Prob. 22P Ch. 10 - Problem 1-21A Effect of product versus period...Ch. 10 - Problem 1-22A Product versus SGA costs The...Ch. 10 - Prob. 25P Ch. 10 - Prob. 26P Ch. 10 - Prob. 27P Ch. 10 - Prob. 28P Ch. 10 - Prob. 29P Ch. 10 - Prob. 30P Ch. 10 - Prob. 31P Ch. 10 - Prob. 32P Ch. 10 - Prob. 1ATC Ch. 10 - Prob. 2ATC Ch. 10 - Prob. 3ATC Ch. 10 - Prob. 4ATC Ch. 10 - Ethical Dilemma Product cost versus selling and...

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Solution Summary: The author explains how to calculate the total amount of pay roll cost classified under selling, general, and administrative expenses.

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