The sales staff of Central Media Cost Assignment
Cost Assignment
The sales staff of Central Media (a locally owned radio and cable television station) consists of two salespeople, Derek and Lawanna. During March, the following salaries and commissions were paid:
|
Derek
|
Lawanna
|
|
Salaries
|
$25,000
|
$30,000
|
|
Commissions
|
6,000
|
1,500
|
Derek spends 100% of his time selling advertising. Lawanna spends two-thirds of her time selling advertising and the remaining one-third on administrative work. Commissions are paid only on sales.
Required:
1. Accumulate these costs by account by filling in the following table:
Cost Salaries Commissions
Derek Lawanna
Total
2. Assign the costs of salaries and commissions to selling expense and administrative expense by filling in the following table:
Cost Selling Costs Administrative Costs
Derek's salary Lawanna's salary Derek's commissions Lawanna's commissions
Total