Evaluate the total product cost for the year

Assignment Help Financial Accounting

Reference no: EM134026

Question 1 :

A review of the accounting records of Rayford Manufacturing showing that the company incurred the subsequent 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.

Required:

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

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

Question 2 :

Howle Manufacturing Company started operations on 1^st January. During the year, it started and completed 1,700 units of product. The company incurred the subsequent 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.

Required:

a. Evaluate the total product cost for the year.

b. Evaluate the total cost of the ending inventory.

c. Evaluate the total of cost of goods sold.

Reference no: EM134026

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