Answer:
a. $363,000
b. $827,200
Explanation:
The calculations are given below:
a. Payroll cost is
= Salary of the company president + Salary of the chief financial officer + Salary of the vice president of marketing + Salaries of administrative secretaries + Commissions paid to sales staff
= $75,000 + $42,000 + $40,000 + $60,000 + $146,000
= $363,000
And, for computing payroll cost included in the cost of goods sold first we have to find out the total cost i.e given below:
= Salary of the vice president of manufacturing + Salaries of middle managers (department heads, production supervisors) in manufacturing plant + Wages of production workers + Salaries of engineers and other personnel responsible for maintaining production equipment
= $50,000 + $147,000 + $703,500 + $133,500
= $1,034,000
Now the cost of goods sold would be
= Total cost × sales units ÷ number of units produced
= $1,034,000 × 4,000 units ÷ 5,000 units
= $827,200
