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 CHARGED JOB 401 28,000 18,000 5,600 ______ 51,600
Direct materials Direct labor Factory overhead Overtime Total
TO JOB JOB 402 37,000 23,000 11,200 6,000 77,200
CHARGED TO FOC Other factory costs Overtime Total
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 Employe e Austria Bautista DeSantos Motus Reyes TOTAL Employe e Austria Bautista DeSantos Motus Reyes
No. Hr s 86 88 88 80 80
Rate 36.00 36.00 45.00 30.00 30.00
Regular Pay
OT Hours
3,096 3,168 3,960 2,400 2,400 15,024
6 8 8 -
Total Pay
WTax
SSS
3,204 3,312 4,140 2,400 2,400
91.23 102.03 15.85
109.00 127.20 145.30 90.80 90.80
Rate
Overtime Premium
18.00 18.00 22.50 -
Pagibi g 96.12 99.36 100.00 72.00 72.00
108.00 144.00 180.00 -__ 432.00 PH 100 100 100 100 100
Total Pay 3,204 3,312 4,140 2,400 2,400___ 15,456
Total Deductio ns 396.35 428.59 345.30 262.80 278.65__
Net Pay 2,807.65 2,883.41 3,794.70 2,137.20 2,121.35
TOTAL 15,456 Withholding tax Austria
209.11
563.10 439.48
500
3,204 2,500 704 x 10%
Bautista
3.312 2,500 812 x 10%
Reyes
1,711.69
13,744.31
20.83 70.40 91.23 20.83 81.20 102.03
2,400 2,083 317 x 5%
b) 1.
15.85 Payroll WTax Payable SSS Prem. Payable Pag-ibig Contributions Payable Philhealth Contributions Payable Accrued payroll
15,456 209.11 563.10 439.48 500.00 13,744.31
2.
Accrued payroll Cash
13,744.31 13,744.31
3.
Work in process (3,096+3,168+3,960) FOC (2,400+2,400+432 ) Payroll
10,224 5,232 15,456
Problem 3 - Norman Company Employe e Cruz Briones David Mendoze Rivera Tolentino TOTAL
Guarantee d Wage 2,000 2,000 2,000 2,000 2,000 2,000 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)
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 -
Deficienc y 200 200 312,50 -___ 712.50
11,632.50 712,50
Total Payroll 2,000.00 2,145.00 2,062.50 2,000.00 2,000.00 2,137.50 12,345.00
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. REG HRS . 80 85 88 88 85
Employee Castro Ardina Briones David Fajardo TOTAL
426
Continuation Employee
Total Pay
Castro Ardina Briones David Fajardo
28,800 29,500 28,800 27,300 25,925
TOTAL
140,325
Castro Total pay
Ardina Total pay
Briones Total pay
LAR RATE
PAY
150.00 160.00 150.00 150.00 150.00
12,000.00 13,600.00 13,200.00 13,200.00 12,750.00
5 8 8 5
64,750.00
26
760.00
OT HRS.
OT PAY RATE
TOTAL PAY
80.00 75.00 75.00 75.00
12,000.00 14,000.00 13,800.00 13,800.00 13,125.00
400.00 600.00 600.00 375.00
-__ 305.00 1,975.00
66,725.00
SSS W/holdin Prem. g Tax 581.30 7,378.89 581.30 6,314.89 581.30 6,757.77 581.30 6,610.89 581.30 6,170.89
Phil. Pag- Total Health ibig Deduct 350.00 362.50 350.00 337.50 312.50
100.00 100.00 100.00 100.00 100.00
8,410.19 7,358.69 7,789.07 7,629.69 7,164.69
3,589.81 6,641.31 6,010.93 6,170.31 5,960.31
2,906.5 0
1,712.50
500.00
38,352.33
28,372.67
33,233.33
28,800 22,017 6,783 x 32% 29,500 26,042 3,458 x 32% 28,800
- 5,208.33 2,170.56 7,378.89 5.208.33 1,106.56 6,314.89
Net Pay
23,958 4,842 x 32%
David Total pay
27,300 22,917 4,383 x 32%
Fajardo Total pay
2.
5,208.33 1,549.44 6,757.77
25.925 22,917 3,008 x 32%
Payroll W/holding tax payable SSS Premiums payable Phil Health Contributions payable Pag-ibig funds contributions payable Accrued payroll
5,208.33 1,402.56 6.610.89 5,208.33 962.56 6,170.89 66,725 33,233.33 2,906.50 1,712.50 500.00 28,372.67
Accrued payroll Cash
28,372.67 28,372.67
Work in process Factory overhead control (12,000 + 1,975) Payroll
52,750 13,975
MULTILE CHOICE 1. b 2. b 3. a 4. b 5. a
6. 7. 8. 9. 10.
a d d a c
11. 12. 13. 14. 15.
66,725
b c 692,500 d d
