Principles of Cost Accounting
17th Edition
ISBN: 9781305087408
Author: Edward J. Vanderbeck, Maria R. Mitchell
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 3, Problem 11P
1.
To determine
Prepare necessary
2.
To determine
Prepare necessary journal entries to record the various
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Hakone Company determined P 284,200 payroll for the week consisting of P 240,000 earned by 80 direct laborers and P 44,200 earned by 20 indirect laborers. The total factory bonuses to be paid at year-end is estimated at P 980,000. All factory workers receive a three-week paid vacation and 10 paid holidays. Required:
Prepare the journal entries to: (a) distribute the weekly payroll and to (b) accrue the bonus, vacation and holiday pay.
Hakone Company determined ₱284,200 payroll for the week consisting ₱240,000 earned by 80 direct laborers and ₱44,200 earned by 20 indirect laborers. The total factory bonuses to be paid at year-end is estimated at ₱980,000. All factory workers receive a three-week paid vacation and 10 paid holidays.
Required: Prepare the journal entries to (a) distribute the weekly payroll and to (b) accrue the bonus, vacation, and holiday pay.
A manufacturing company's payroll register shows the following inofrmation for December:
Salary paid to marketing department, 40,000 (10 employees)
Wages paid to labor, 100,000
Insurance is fully paid by the company, 10,000 per month
Company has a policy to award a fully paid one week vacation for the best employee of the year from marketing department with a bonus of 1,500.
Required: Assuming that current period has compeled, prepare all necessary journal entries to record payroll on December 31st.
Chapter 3 Solutions
Principles of Cost Accounting
Ch. 3 - What is the difference between direct and indirect...Ch. 3 - Prob. 2QCh. 3 - Prob. 3QCh. 3 - In production work teams, output is dependent upon...Ch. 3 - Define productivity.Ch. 3 - Prob. 6QCh. 3 - Prob. 7QCh. 3 - Prob. 8QCh. 3 - Prob. 9QCh. 3 - What are the sources for posting direct labor cost...
Ch. 3 - What are the sources for posting indirect labor...Ch. 3 - In accounting for labor costs, what is the...Ch. 3 - Prob. 13QCh. 3 - Prob. 14QCh. 3 - Besides FICA, FUTA and state unemployment taxes,...Ch. 3 - Prob. 16QCh. 3 - Prob. 17QCh. 3 - Prob. 18QCh. 3 - What is a shift premium, and how is it usually...Ch. 3 - Prob. 20QCh. 3 - Prob. 21QCh. 3 - Prob. 22QCh. 3 - Prob. 23QCh. 3 - Prob. 24QCh. 3 - Prob. 25QCh. 3 - R. Herbert of Crestview Manufacturing Co. is paid...Ch. 3 - Recording payroll Using the earnings data...Ch. 3 - Prob. 3ECh. 3 - Peggy Nolan earns 20 per hour for up to 300 units...Ch. 3 - Overtime Allocation Arlin Fabrication Company...Ch. 3 - Prob. 6ECh. 3 - Davis, Inc. paid wages to its employees during the...Ch. 3 - Recording the payroll and payroll taxes Using the...Ch. 3 - Prob. 9ECh. 3 - The total wages and salaries earned by all...Ch. 3 - The total wages and salaries earned by all...Ch. 3 - A weekly payroll summary made from labor time...Ch. 3 - Prob. 13ECh. 3 - Accounting for bonus and vacation pay Cathy Muench...Ch. 3 - Prob. 15ECh. 3 - Prob. 16ECh. 3 - Payroll computation with incentive bonus Fifteen...Ch. 3 - Prob. 2PCh. 3 - Prob. 3PCh. 3 - Payroll for piece-rate wage system Collier...Ch. 3 - A rush order was accepted by Bartley's Conversions...Ch. 3 - The following form is used by Matsuto...Ch. 3 - Payment and distribution of payroll The general...Ch. 3 - Prob. 8PCh. 3 - An analysis of the payroll for the month of...Ch. 3 - Prob. 10PCh. 3 - Prob. 11PCh. 3 - Prob. 12PCh. 3 - Prob. 13PCh. 3 - Using the information in P3-13, prepare the...Ch. 3 - Pan-Am Manufacturing Co. prepares cost estimates...Ch. 3 - Incentive wage plan David Kelley is considering...Ch. 3 - Huron Manufacturing Co. uses a job order cost...
Knowledge Booster
Similar questions
- The total wages and salaries earned by all employees of James Industries during the month of February, as shown in the labor cost summary and the schedule of fixed administrative and sales salaries, are classified as follows: a. Prepare a journal entry to distribute the wages earned during February. b. What is the total amount of payroll taxes that will be imposed on the employer for the payroll, assuming that three administrative employees with combined earnings this period of 4,500 have exceeded 8,000 in earnings prior to the period?arrow_forwardA weekly payroll summary made from labor time records shows the following data for Pima Company: Overtime is payable at one-and-a-half times the regular rate of pay and is distributed to all jobs worked on during the period. a. Determine the net pay of each employee. The income taxes withheld for each employee amount to 15% of the gross wages. b. Prepare journal entries for the following: 1. Recording the payroll. 2. Paying the payroll. 3. Distributing the payroll. (Assume that the overtime premium will be charged to all jobs worked on during the period.) 4. The employers payroll taxes. (Assume that none of the employees has achieved the maximum wage bases for FICA and unemployment taxes.)arrow_forwardPrepare the journal entry to record the factory wages of $25,000 incurred in the processing department and $15,000 incurred in the production department assuming payment will be made in the next pay period.arrow_forward
- Prepare the journal entry to record the factory wages of $28,000 incurred for a single production department assuming payment will be made in the next pay period.arrow_forwardR. Herbert of Crestview Manufacturing Co. is paid at the rate of 20 an hour for an eight-hour day, with time-and-a-half for overtime and double-time for Sundays and holidays. Regular employment is on the basis of 40 hours a week, five days a week. At the end of a week, the labor time record shows the following: Because jobs are randomly scheduled for the overtime period, any overtime premium is charged to Factory Overhead. a. Compute Herberts total earnings for the week. b. Present the journal entry to distribute Herberts total earnings. (Note: These single journal entries here and in E3-2, E3-3, E3-4, E3-8 and E3-9 are for the purpose of illustrating the principle involved. Normally, the entries would be made for the total factory payroll plus the administrative and sales payroll.)arrow_forwardAn analysis of the payroll for the month of November for CinMar Inc. reveals the information shown: All regular time Andrews, Lomax, and Herzog are production workers, and Dimmick is the plant manager. Hendrick is in charge of the office. Cumulative earnings paid (before deductions) in this calendar year prior to the payroll period ending November 8 were as follows: Andrews, 21,200; Lomax, 6,800; Herzog, 11,500; Dimmick, 116,200; and Hendrick, 32,800. The solution to this problem requires the following forms, using the indicated column headings: 1. Prepare an employee earnings record for each of the five employees. 2. Prepare a payroll record for each of the four weeks. 3. Prepare a labor cost summary for the month. 4. Prepare journal entries to record the following: a. The payroll for each of the four weeks. b. The payment of wages for each of the four payrolls. c. The distribution of the monthly labor costs per the labor cost summary. d. The company's payroll taxes covering the four payroll periods.arrow_forward
- Trowbridge Company has just completed the processing of its year-end payroll and distributed all the weekly paychecks. The payroll department is now computing the amount of the annual bonus to be given each worker. What methods may be used by the company in determining the amount of federal income taxes to be withheld from the annual bonus payments?arrow_forwardA company has the following transactions during the week. Purchase of $1,000 raw materials inventory Assignment of $500 of raw materials inventory to Job 5 Payroll for 20 hours with $1,000 assigned to Job 5 Factory utility bills of $750 Overhead applied at the rate of $10 per hour What is the cost assigned to Job 5 at the end of the week?arrow_forwardMcLoyd Company completed the salaries and wages payroll for March. The payroll provided the following details: Salaries and wages earned $ 570,000 Employee income taxes withheld 52,725 FICA taxes withheld 40,755 Unemployment taxes 3,965 Required: 1. Considering both employee and employer payroll taxes, use the preceding information to calculate the total labor cost for the company for March. 2, & 3. Prepare the journal entry to record the payroll for March, including employee deductions (but excluding employer payroll taxes) and record employer’s FICA taxes and unemployment taxes. Employees were paid in March but amounts withheld were not yet remitted.arrow_forward
- McLoyd Company completed the salaries and wages payroll for March. The payroll provided the following details: Salaries and wages earned$520,000 Employee income taxes withheld 48,100 FICA taxes withheld 37,180 Unemployment taxes 3,615 Considering both employee and employer payroll taxes, use the preceding information to calculate the total labor cost for the company for March. Prepare the journal entry to record the payroll for March, including employee deductions (but excluding employer payroll taxes) and record employer’s FICA taxes and unemployment taxes. Employees were paid in March but amounts withheld were not yet remitted.arrow_forwardA loom operator in a textiles factory earns $16 per hour. By contract, the employee earns $24 (time and a half) for overtime hours. The operator worked 45 hours during the first week of May, and overtime is paid after the usual 40 hours.Required:1. Compute the loom operator’s compensation for the week.2. Calculate the employee’s total overtime premium for the week.3. How much of the employee’s total compensation for the week is direct-labor cost? How much is overhead?arrow_forwardPalouse Company completed the salary and wage payroll for the month of March. The payroll provided the following details: Salaries and wages earned by employees $216,000 Employee income taxes withheld 43,200 Employee government insurance premiums withheld 4,000 FICA payroll taxes* 15,800* Assessed on both employer and employee (i.e., $15,800 each). Required: Prepare the journal entry to record the payroll for March, including employee deductions. Assume employees have been paid, but that Palouse has yet to transfer any withholdings to the government. Prepare the journal entry to record the employer's payroll taxes, which have not yet been paid to the government. Provide a combined journal entry to show the payment of all amounts owed to governmental agencies. Record the payroll for March, including employee deductions.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Cost AccountingAccountingISBN:9781305087408Author:Edward J. Vanderbeck, Maria R. MitchellPublisher:Cengage LearningPrinciples of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College
Principles of Cost Accounting
Accounting
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College