1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
LekaFEV [45]
3 years ago
6

A review of the accounting records of Perez 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. (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.
Business
1 answer:
Yuliya22 [10]3 years ago
5 0

Answer:

SG&A expense = $363,000

Payroll cost which is included in Cost of goods sold = $827,200

Explanation:

The computation of SG&A and cost of goods sold

a.

Salary of the company president = $75,000

Add: Chief financial officer salary  = $42,000

Add: Vice president of marketing salary = $40,000

Add: Administrative secretaries salaries = $60,000

Add: Commissions paid to sales staff = $146,000

SG&A expense = $363,000

b.

Vice president of marketing salary= $50,000

Add: Middle managers salaries = $147,000

Add: Wages of production workers = $703,500

Add: Engineers and other personnel responsible salaries= $133,500

Total = $1,034,000

Payroll cost which is included in Cost of goods sold

= $1,034,000 × 4000 ÷ 5000

= $827,200

You might be interested in
The main expense of a merchandiser is usually ________.
olya-2409 [2.1K]

The answer that will fill in the blank is cost of goods sold because the merchandiser’s main expense is the cost that they receive in goods that they have sold to the consumers. The merchandiser is the one responsible of ensuring products are placed and are properly organized in the store.

7 0
3 years ago
A firm has sales of $1.8 million, and 20 percent of the sales are for cash. The year-end accounts receivable balance is $225,000
Juliette [100K]

Answer:

The average collection period is 56.25 days

Explanation:

The average collection period is the number of days' sales in receivables and calculated by using following formula:

The number of days' sales in receivables = 360/Accounts receivable turnover ratio

Accounts Receivable Turnover = Net Credit Sales/Accounts Receivable

Net Credit sales = Total Sales - the sales are for cash = $1,800,000 - 20% x $1,800,000 = $1,440,000

Accounts Receivable Turnover = $1,440,000/$225,000 = 6.4 times

The number of days' sales in receivables = 360/6.4 = 56.25 days

7 0
3 years ago
In the boston consulting group growth-share matrix, each of the four categories in the matrix represents ______.
Mandarinka [93]

In the Boston Consulting Group growth-share matrix, each of the four categories in the matrix represents a different investment strategy

More about growth-share matrix:

The growth share matrix was developed through teamwork. It was initially drafted by BCG's Alan Zakon, who would later go on to become the company's CEO, and then improved with his colleagues.

Bruce Henderson, the creator of BCG, popularised the idea in his 1970 essay The Product Portfolio. About half of all Fortune 500 businesses employed the growth share matrix when it was at its most successful.

It continues to be a key component of corporate strategy lessons taught in business schools today.

Learn more about growth-share here:

brainly.com/question/26425181

#SPJ4

5 0
1 year ago
Upward and downward changes in aggregate economic activity, as measured by GDP, are called: Group of answer choices
8_murik_8 [283]

Upward and downward changes in aggregate economic activity, as measured by GDP, are called Business cycles.

<h3>What is  Business cycles?</h3>

Business cycles can be regarded as the  cyclical upswings as well as the downswings that is been used in in the  broad measures of economic activity.

Therefore, Business cycles is Upward and downward changes in aggregate economic activity, as measured by GDP.

Learn more about Business cycles at:

brainly.com/question/22560632

#SPJ1

4 0
2 years ago
At the beginning of April, Warren Corporation's assets totaled $257,000 and liabilities totaled $77,000. During April the follow
g100num [7]

Answer:

Total liabilities is $170,500

Explanation:

Warren's total liabilities at end of April comprises of the beginning  balance of liabilities of $77,000 plus the notes payable signed in  respect of the building acquired in the course of the year,the computation is shown below:

Beginning balance of liabilities         $77,000

Notes payable                                    $93,500

Total liabilities                                     $170,500

The notes signed by employee of $11,700 is notes receivable as the employee is owing the company and should be classified as notes payable ,but notes receivable instead, an asset.                      

3 0
3 years ago
Other questions:
  • Which analytical tool determines the relative attractiveness of various strategies based on the extent to which key external and
    9·1 answer
  • Firm BUS106 now has 100,000 shares of common stock outstanding, and the total market value of equity equals $5,000,000. It also
    14·2 answers
  • The _____ adds up the market prices of final goods and services to calculate Gross Domestic Product (GDP).
    5·2 answers
  • The _________________ argument points out that if an employer reacts to poor business conditions by reducing pay for all workers
    13·1 answer
  • Novak Corp. had the following account balances at year-end: Cost of Goods Sold $61,200; Inventory $14,550; Operating Expenses $2
    8·1 answer
  • A broker desires to keep an escrow account in an interest bearing account. Would this be legal?
    9·1 answer
  • Problems and Applications Q7
    9·1 answer
  • The primary difference between a change in supply and a change in the quantity supplied is: Select an answer and submit. For key
    6·1 answer
  • The European Union and the United States are trading partners. (a) If the current account balance is zero, will an increase in U
    12·1 answer
  • 1.Have you or someone you know worked somewhere where the culture was strong? What was your reaction to that strong culture? Did
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!