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Exercise 10-6A (Algo) Identifying product versus SG&A costs LO 10-2, 10-3 A review of the accounting records of Walton 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-$32,400. 2. Salary of the vice president of manufacturing-$16,700. 3. Salary of the chief financial officer-$18,900. 4. Salary of the vice president of marketing-$15,700. 5. Salaries of middle managers (department heads, production supervisors) in manufacturing plant-$198,000. 6. Wages of production workers-$942,000. 7. Salaries of administrative personnel-$105,000. 8. Salaries of engineers and other personnel responsible for maintaining production equipment-$182,000. 9. Commissions paid to sales staff-$252,000. Check my work Required a. What amount of payroll cost would be classified as SG&A (selling, general, and administrative) expense? b. Assuming that Walton made 4,700 units of product and sold 3,760 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

Exercise 10-6A (Algo) Identifying product versus SG\&A costs LO 10-2, 10-3 A review of the accounting records of Walton 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 $32,400. 2. Salary of the vice president of manufacturing $16,700. 3. Salary of the chief financial officer $18,900. 4. Salary of the vice president of marketing $15,700, 5. Salaries of middle managers (department heads, production supervisors) in manufacturing plant- $198,000. 6. Wages of production workers $942,000. 7. Salaries of administrative personnel- $105,000. 8. Salaries of engineers and other personnel responsible for maintaining production equipment $182,000. 9. Commissions paid to sales staff- $252,000. Required a. What amount of payroll cost would be classified as SG\&A (selling. general, and administrative) expense? b. Assuming that Walton made 4,700 units of product and sold 3,760 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. Exercise 10-8A (Algo) Allocating product costs between ending inventory and cost of goods sold LO 1-3 Zachary Manufacturing Company began operations on January 1. During the year, it started and completed 1,720 units of product. The financial statements are prepared in accordance with GAAP. The company incurred the following costs: 1. Raw materiais purchased and used $3,170. 2. Wages of production workers $3,560. 3. Salaries of administrative and sales personnei-\$1,915. 4. Depreciation on manufacturing equipment $4,450. 5. Depreciation on administrative equipment-\$1,775. Zachary sold 1,210 units of product. Required a. Determine the total product cost for the year. b. Determine the total cost of the ending inventory. Note: Do not round intermediate calculations. c. Determine the total of cost of goods sold. Note: Do not round intermediate calculations. Answer is complete but not entirely correct

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