A review of the accounting records of Vernon Manufacturing indicated that the company incurred the following...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A review of the accounting records of Vernon 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-$32,200. 2. Salary of the vice president of manufacturing-$16,000. 3. Salary of the chief financial officer-$18,000. 4. Salary of the vice president of marketing-$16,400. 5. Salaries of middle managers (department heads, production supervisors) in manufacturing plant-$191,000. 6. Wages of production workers-$944,000. 7. Salaries of administrative secretaries-$104,000. 8. Salaries of engineers and other personnel responsible for maintaining production equipment-$170,000. 9. Commissions paid to sales staff-$260,000. Required a. What amount of payroll cost would be classified as SG&A expense? b. Assuming that Vernon made 3,600 units of product and sold 3,060 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.) #1. 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 Vernon 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-$32,200. 2. Salary of the vice president of manufacturing-$16,000. 3. Salary of the chief financial officer-$18,000. 4. Salary of the vice president of marketing-$16,400. 5. Salaries of middle managers (department heads, production supervisors) in manufacturing plant-$191,000. 6. Wages of production workers-$944,000. 7. Salaries of administrative secretaries-$104,000. 8. Salaries of engineers and other personnel responsible for maintaining production equipment-$170,000. 9. Commissions paid to sales staff-$260,000. Required a. What amount of payroll cost would be classified as SG&A expense? b. Assuming that Vernon made 3,600 units of product and sold 3,060 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.) #1. Payroll cost to be included in SG&A cost b. Payroll cost to be included in cost of goods sold
Expert Answer:
Answer rating: 100% (QA)
a Salary of the company president 32800 Salary of th... View the full answer
Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-1259569197
8th edition
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Olds
Posted Date:
Students also viewed these accounting questions
-
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...
-
A review of the accounting records at Corless Co. revealed the following information concerning the company's liabilities that were outstanding at December 31, 2011, and 2010, respectively Required:...
-
In Exercises 130, find the domain of each function. f(x) = 1 4 x - 2 3
-
1. Each of these systems needed significant investment in resources and capital. What do you believe was the rationale to justify the costs of these systems? What types of quantitative savings can be...
-
What criteria are considered in deciding on the frequency of progress reporting for a project?
-
Describe an experiment, and give the necessary equations for the measurement of the complex extensional (or longitudinal) modulus, \(E_{x}^{*}\), of a symmetric laminated bar.
-
Use the information in the following table to make a suggestion concerning the proportion of debt that the firm should utilize in its capital structure. Benefit or (Cost) Tax shield Agency cost No...
-
Henry Inc. purchased $10,000 of Container Corporation's 5% bonds at par. The purchase was made on January 1, and the investment was classified as a trading security. On June 30, Henry Inc. received...
-
Refer to the Big Rig Rental Company case. Design a spreadsheet that will allow the firm to determine the Net Present Value of cash flows over the five-year period. The following exercises refer to...
-
Assemble a multiple-sequence FASTA file with your Gene-Of-Interest and 5 "divergent" orthologs. n
-
Federal courts may refuse to enforce a state or federal statute that violates the U.S. Constitution.(True/False)
-
A federal form of government is one in which a central authority holds all power. (True/False)
-
Nintendo of America, Inc. contacts Play 2 Win Games and offers to sell one to twenty-five new gaming systems for $75 each. State number desired in acceptance. Play 2 Win agrees to buy twenty systems....
-
Helen, an undercover police officer, pressures Pete to buy stolen goods. When he does so, he is arrested and charged with dealing in stolen goods. Pete will likely be a. acquitted because he was...
-
The president can hold acts of Congress and of the courts unconstitutional. (True/False)
-
What are the important factors that helped in recovering the economy after pandemic?
-
A company has the following incomplete production budget data for the first quarter: In the previous December, ending inventory was 200 units, which was the minimum required, at 10% of projected...
-
Rolla Company has a choice of two investment alternatives. The present value of cash inflows and outflows for the first alternative is $125,000 and $100,000, respectively. The present value of cash...
-
Loretto Technologies Company's 2018 master budget called for using 60,000 hours of labor to produce 180,000 units of software. The standard labor rate for the company's employees is $50 per direct...
-
Kirby Health Care Center, Inc. has three clinics servicing the Seattle metropolitan area. The company's legal services department supports the clinics. Moreover, its computer services department...
-
Form a small group. Concentrate on BSE Sensex companies and compile the voluntary disclosures made by each of them. Draft a crisp research paper highlighting your findings and use thereof to various...
-
Billy Ray Nibert was convicted of capital murder in the Circuit Court, Hillsborough County and he appealed. The Supreme Court of Florida affirmed the conviction, vacated the death sentence and...
-
Hassan Abu-Jihaad was convicted of disclosing national defense information and of providing material support to terrorist by a jury in the District Court of Connecticut. Abu-Jihaad moved for a...
Study smarter with the SolutionInn App