5. Mr. Combate, a factory laborer earns P18,000 per month, and the company pays one month salary as a bonus at the end of the year. Mr. Combate is entitled to a half month paid vacation leave. The company also pays P4,000 a year into a pension fund of the worker. All fringe benefits of factory laborer are charged to the factory overhead account. The fringe benefits are charged to production during the 11 1/2 months the employee is at work. Required: Compute the total liability for fringe benefits and prepare journal entries to record the incurrence of labor cost, distribution and fringe benefit liabilities.
5. Mr. Combate, a factory laborer earns P18,000 per month, and the company pays one month salary as a bonus at the end of the year. Mr. Combate is entitled to a half month paid vacation leave. The company also pays P4,000 a year into a pension fund of the worker. All fringe benefits of factory laborer are charged to the factory overhead account. The fringe benefits are charged to production during the 11 1/2 months the employee is at work. Required: Compute the total liability for fringe benefits and prepare journal entries to record the incurrence of labor cost, distribution and fringe benefit liabilities.
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter12: Preparing Payroll Records
Section: Chapter Questions
Problem 1AP
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