A review of the accounting records of Rayford Manufacturing indicated that the company incurred the following payroll costs during the month of August.
Salary of the company president $70,000
Salary of the vice president of manufacturing $50,000
Salary of the chief financial officer $50,000
Salary of the VP of Marketing $40,000
Salaries of Middle Managers $65,000
Wages of production workers $520,000
Salaries of administrative secretaries $73,000
Salaries of engineers and other personels $135,000
Commisions paid to sales staff $138,000
A) What amount of payroll cost would be classified as general, selling, and administrative expense?
B) Assuming that Rayford made 5,000 units of product and sold 3,750 of them during the month of August, determine the amount of payroll cost that would be included in cost of goods sold.