PAYROLL ACCT.,2019 ED.(LL)-TEXT
19th Edition
ISBN: 9781337619783
Author: BIEG
Publisher: CENGAGE L
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Question
Chapter 2, Problem 21PA
a.
To determine
Calculate weekly net sales.
b.
To determine
Calculate commission and weekly net sales of cashmere sweaters.
c.
To determine
Calculate push money (PM).
d.
To determine
Calculate total weekly earnings.
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Shawn, an outside sales representative for Marosh Communications in Caldwell, Idaho, receives a 5 percent commission on all new
marketing packages sold within the sales territory. During the week of April 6, there were $9,500 of new subscriptions sold during 40
hours of work.
Required:
1. What is Shawn's gross pay?
2. Are the wages subject to minimum wage laws?
1. Gross pay
2. Are the wages subject to minimum wage laws?
Terry McNutt, a single employee with two withholding allowances, is paid $11.50 per hour and receives commission on net sales. He
does not receive a commission until his net sales exceed $150,000. Once the minimum net sales is reached, he receives 2 percent
commission on all of his sales at Skidoo Sports. During the week of January 23, he sold $83,000 of ski equipment; however, he had
$2,200 of returns from the prior week's sales. Company policy requires that commissions on sales returns are deducted from the
employee's pay, regardless of current commission earnings.
Required:
Compute Terry's gross pay for the 40 hour weekly pay period. (Negative amount(s) should be indicated by a minus sign.)
Company
Skidoo Sports
Period Ended:
1/23/20XX
Name
M/S
# of W/H
Hourly Rate
No. of Regular Hours
Regular Earnings
Commissions
Gross Earnings
Terry McNutt
Terry McNutt, a single employee with two withholding allowances, is paid $12.00 per hour and receives commission on net sales. He does not receive a commission until his net sales exceed $150,000. Once the minimum net sales is reached, he receives 4 percent commission on all of his sales at Skidoo Sports. During the week of January 23, he sold $82,000 of ski equipment; however, he had $2,300 of returns from the prior week’s sales. Company policy requires that commissions on sales returns are deducted from the employee’s pay, regardless of current commission earnings. Required: Compute Terry’s gross pay for the 40 hour weekly pay period. (Negative amount(s) should be indicated by a minus sign.)
Chapter 2 Solutions
PAYROLL ACCT.,2019 ED.(LL)-TEXT
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