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
