CHAPTER 8 - ACCOUNTING FOR LABOR TRUE/FALSE 1. True 2. False 3. False 4. False 5. False
6. 7. 8. 9. 10.
False True True True True
Problem 1 - Evergreen Company A) 1. CHARGED TO THE JOB 2. CHARGED TO FACTORY OVERHEAD CONTROL
Direct materials Direct labor Factory overhead Overtime Total
CHARGED JOB 401 28,000 18,000 5,600 ______ 51,600
CHARGED TO FOC Other factory costs Overtime Total
TO JOB JOB 402 37,000 23,000 11,200 6,000 77,200
P 16,800 6,000 P 22,800
CHARGED JOB 401 28,000 18,000 7,600 ______ 53,600
TO FOC JOB 402 37,000 23,000 15,200 ______ 75,200
x 1/3 X 2/3
Problem 2 No. Regular OT Employee Hrs Rate Pay Hours Austria 42 36.00 1,512 2 Bautista 43 36.00 1,548 3 DeSantos 44 45.00 1,980 4 Motus 40 30.00 1,200 Reyes 40 30.00 1,200 TOTAL 7,440 b) 1. Payroll Accrued payroll 2.
3.
Rate 18.00 18.00 22.50 -
Overtime Premium 36.00 54.00 90.00 -__ 180.00
Total Pay 1,548 1,602 2,070 -___ 7,620 7,620 7,620
Accrued payroll Cash
7,620
Work in process (1,512 + 1,548 + 1,980) FOC (1,200 + 1,200 + 180 ) Payroll
5,040 2,580
7,620
7,620
Page 2 Problem 3 - Norman Company Employee Guaranteed Wage Cruz 2,000 Briones 2,000 David 2,000 Mendoze 2,000 Rivera 2,000 Tolentino 2,000 TOTAL 12,000
Total pay – piece rate (240 x 7.50) (286 x 7.50) (275 x 7.50) (240 x 7.50) (225 x 7.50) (285 x 7.50)
Deficiency
1,800 2,145 2,062.50 1,800 1,687.50 2,137.50 11,632.50
2. Charged to Work in process 3. Charged to factory overhead account -
Total Payroll 2,000.00 2,145.00 2,062.50 2,000.00 2,000.00 2,137.50 12,345.00
200 200 312,50 -___ 712.50
11,632.50 712,50
Problem 4 - Ty-Nee Trailer Company Deductions were computed on the assumption that previous payment of wages were made without deductions and all deductions are made on the last payment for the month.
Employee Castro Ardina Briones David Fajardo Tomas Villas TOTAL
REGU HRS. 42 45 48 48 45 42 40
LAR RATE 40.00 50.00 40.00 40.00 40.00 40.00 40.00
Continuation Employee Total SSS Pay Prem. Castro 1,720.00 250.00 Ardina 2,375.00 333.30 Briones 2,080.00 283.30 David 2,080.00 283.30 Fajardo 1,900.00 266.70 Tomas 1,720.00 250.00 Villas 1,600.00 233.30 TOTAL 13,475.00 1899.90 Castro
PAY 1,680.00 2,250.00 1,920.00 1,920.00 1,800.00 1,680.00 1,600.00 12,850.00
OVER TIME HRS. RATE 2 20.00 5 25.00 8 20.00 8 20.00 5 20.00 2 20.00 -
W/holding Phil. Tax Health 681.28 87.50 614.53 112.50 840.93 100.00 865.33 100.00 603.38 87.50 461.38 87.50 438.28 75.00 4,505.11 650.00
PAY 40.00 125.00 160.00 160.00 100.00 40.00 -__ 625.00
Pagibig 100.00 100.00 100.00 100.00 100.00 100.00 100.00 700.00
TOTAL PAY 1,720.00 2,375.00 2,080.00 2,080.00 1,900.00 1,720.00 1,600.00 13,475.00
Total Net Deduct Pay 1,118.78 601.22 1,160.33 1214.67 1,324.23 755.77 1,348.63 731.37 1,057.58 842.42 898.88 821.12 846.58 753.42 7,755.01 5719.99
Total pay (5,600 + 1,720) 7,320 ( 4,167) - 208.33 3,153 x 15% - 472,95 681.28 Ardina Total pay (7,500 + 2,375) 9,875 ( 7,167) 208.33 2,708 x 15% 406.20 614.53 Briones Total pay (6,500 + 2,080) 8,580 (7,917) 708.33 663 x 20% 132,60 840.93 David Total pay (6,200 + 2,080) 8,280 ( 7,500) 708.33 780 x 20% 156.00 864.33 Fajardo Total pay (5,900 +1,900) 7,800 ( 5,167) 208.33 2,633 x 15% 394.95 603.38 Tomas Total pay (5,800 + 1,720) 7,520 ( 5,833) 208.33 1,687 x 15% 253.05 461.38 Villas Total pay (5,200 + 1,600)
2.
6,800 (5,267) 208.33 1,533) x 15% 229.95 438.28
Payroll W/holding tax payable SSS Premiums payable Phil Health Contributions payable Pag-ibig funds contributions payable Accrued payroll
13,475.00 4,505.11 1,899.90 650.00 700.00 5,719.99
Accrued payroll Cash
5,719.99 5,719.99
Work in process (12,850 – 1,680) Factory overhead control (1,680 + 625) Payroll
MULTILE CHOICE 1. b 2. b 3. a 4. b. 5. a `
6. 7. 8. 9. 10.
a d d a c
11,170.00 2,305.00 13,475
11. 12. 13. 14.
b c` 692,500 d
