Determine the total product cost for the year
Course:- Accounting Basics
Reference No.:- EM131900298

Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Accounting Basics

Question 1 - A review of the accounting records of Rayford Manufacturing indicated that the company incurred the following payroll costs during the month of September.

1. Salary of the company president-$32,000.

2. Salary of the vice president of manufacturing-$16,000.

3. Salary of the chief financial officer-$18,800.

4. Salary of the vice president of marketing-$15,600.

5. Salaries of middle managers (department heads, production supervisors) in manufacturing plant-$196,000.

6. Wages of production workers-$938,000.

7. Salaries of administrative secretaries-$112,000.

8. Salaries of engineers and other personnel responsible for maintaining production equipment-$178,000.

9. Commissions paid to sales staff-$252,000.


a. What amount of payroll cost would be classified as selling, general, and administrative expense?

b. Assuming that Rayford made 4,000 units of product and sold 3,600 of them during the month of September, determine the amount of payroll cost that would be included in cost of goods sold.

Question 2 - Howle Manufacturing Company began operations on January 1. During the year, it started and completed 1,700 units of product. The company incurred the following costs.

1. Raw materials purchased and used-$3,150.

2. Wages of production workers-$3,530.

3. Salaries of administrative and sales personnel-$1,995.

4. Depreciation on manufacturing equipment-$4,370.

5. Depreciation on administrative equipment-$1,835.

Howle sold 1,020 units of product.


a. Determine the total product cost for the year.

b. Determine the total cost of the ending inventory.

c. Determine the total of cost of goods sold.

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
On February 12, 6, 000 shares of Lucas Company are acquired at a price of $22 per share plus a $240 brokerage fee. Prepare the journal entries for the original purchase, divid
All the debentures were fully subscribed and allotted. Application and Allotment money were received on 8th and 12th July1990 respectively. You are required to make entries
Identify which federal law regulates the following areas and situations: cross checking IRS and Social Security files to verify the accuracy of information, customer liabili
Bell company is concsidering the disposal of equipment that is no longer needed for operations. the equipment originally cost $500,000 and accumulated depreciation to date t
The cumulative temporary difference to date is $40 million (also the future taxable amount). The enacted tax rate is 40%. What is deferred tax asset or liability to be reporte
Regardless of any tax consequences resulting from their interests in Flycatcher, Nancy is in the 28% marginal tax bracket and Pasqual is in the 35% marginal tax bracket. Wit
Hobart Beverage Company uses the weighted-average method in its process costing system. Materials are included at the start of the production process but conversion costs ar
Accounting Problem Exercise 24-4 Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direc