The gross earnings of the factory workers for Waterway Company during the month of January are $86,000. The employer’s payroll taxes for the factory payroll are $9,500. The fringe benefits to be paid by the employer on this payroll are $5,300. Of the total accumulated cost of factory labor, 81% is related to direct labor and 19% is attributable to indirect labor.(a) Prepare the entry to record the factory labor costs for the month of January.(b) Prepare the entry to assign factory labor to production.

The gross earnings of the factory workers for Waterway Company during the month of January are $86,000. The employer’s payroll taxes for the factory payroll are $9,500. The fringe benefits to be paid by the employer on this payroll are $5,300. Of the total accumulated cost of factory labor, 81% is related to direct labor and 19% is attributable to indirect labor.(a) Prepare the entry to record the factory labor costs for the month of January.(b) Prepare the entry to assign factory labor to production.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter3: Accounting For Labor

Section: Chapter Questions

Problem 12E: A weekly payroll summary made from labor time records shows the following data for Pima Company:...

See similar textbooks

Similar questions

The total wages and salaries earned by all employees of Langen Electronics, Ltd. during March, 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 March. b. What is the total amount of payroll taxes that will be imposed on the employer for the payroll, assuming that two administrative employees with combined earnings this period of 3,000 have exceeded 8,000 in earnings prior to the period?
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.
R. 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.)
A 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.)
Prepare 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.
The net earnings of the factory workers for Larkin Company during the month of January are $87,000. The employer's payroll taxes for the factory payroll are $9,400. The fringe benefits to be paid by the employer on this payroll are $5,000. Of the total accumulated cost of factory labor, 82% is related to direct labor and 18% is attributable to indirect labor. (a) Prepare the entry to record the factory labor costs for the month of January. (b) Prepare the entry to assign factory labor to production. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
The wages payable related to factory workers for Larkin Company during the month of January are $73,000. The employer's payroll taxes for the factory payroll are $9,200. The fringe benefits to be paid by the employer on this payroll are $6,200. Of the total accumulated cost of factory labor, 83% is related to direct labor and 17% is attributable to indirect labor. (a) (b) Prepare the entry to record the factory labor costs for the month of January. Prepare the entry to assign factory labor to production. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation (a) (b) Debit Credit II
The gross earnings of factory workers for Dinkel Company during the month of January are $400,000. The employer's payroll taxes for the factory payroll are $80,000. Of the total accumulated cost of factory labor, 75% is related to direct labor and 25% is attributable to indirect labor. (a) Prepare the entry to record the factory labor costs for the month of January. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Save for Later Debit Credit Attempts: 0 of 1 used (b) The parts of this question must be completed in order. This part will be available when you complete the part above. Submit Answer
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.
During the current month, a company that uses job order costing incurred a monthly factory payroll of $180,000. Of this amount, $40,000 is classified as indirect labor and the remainder as direct. Prepare journal entries to record these transactions.
The gross earnings of factory workers for Blossom Company during the month of January are $320,000. The employer's payroll taxes for the factory payroll are $64,000. Of the total accumulated cost of factory labor, 75% is related to direct labor and 25% is attributable to indirect labor. (a) Prepare the entry to record the factory labor costs for the month of January. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Your answer has been saved. See score details after the due date. Account Titles and Explanation (b) (c) Factory Labor Payroll Liabilities Your answer has been saved. See score details after the due date. Account Titles and Explanation Work in Process Inventory Manufacturing Overhead Prepare the entry to assign factory labor to production. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit…
McLoyd 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.