Exercise $10-6$A $($Static$)$ Identifying product versus SG&A costs LO $10-2,10-3$

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.

Salary of the company president$-$ $$75,000.$

Salary of the vice president of manufacturing $-$$$50,000.$

Salary of the chief financial officer $-$$$42,000.$

Salary of the vice president of marketing $-$$$40,000.$

Salaries of middle managers $($department heads, production supervisors$)$ in manufacturing

plant$-$$$147,000.$

Wages of production workers$-$ $$703,500.$

Salaries of administrative personnel$-$ $$60,000.$

Salaries of engineers and other personnel responsible for maintaining production equipment

$-$$$133,500.$

Commissions paid to sales staff$-$ $$146,000.$

Required

a$.$ What amount of payroll cost would be classified as SG&A $($selling$,$ general, and administrative$)$

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.

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