Barcoo Pty Ltd employs five (5) employees in its factory. GALLAGHER spends half his time delivering finished goods for the sales department. Half of the wages are paid by the sales department. All accounts are in a single ledger. The following pay information relates to the week ended 11 June 2010. Each employee normally works a 40 hour week. Any hours in excess of 40 are paid as overtime (at 1½ times the normal hourly rate). The supervisor is paid $20 per hour, and the remaining four employees $16 per hour. The time sheet summary for the week to 8 June 2007 shows: Employee Hours Total Chong Supervision 40 Dashwood Job 01 36 Cleaning 6 42 Edwards Job 01 22 Job 02 20 42 Ftelianos Job 02 28 Sick leave 4 Maintenance 8 40 Gallagher Materials store 40 204 The company reduces the appropriate accrual/provision for any leave paid. Payment of sick leave was approved for Ftelianos PAYG tax withheld from all pays for the week totalled $1,036. There were no other payroll deductions. The company accrues superannuation guarantee contributions at 9% of gross ordinary wages. ( calculate to the nearest whole dollar ) Overtime premium is charged to factory overhead, except for job 02 that is a rush order. REQUIRED: (a) Calculate the total gross payroll for the week ended 11 June 2010. (b) Prepare general journal entries to record: The allocation of the labour cost as direct and/or indirect. The gross factory payroll for the week and the payment of net pays. The accrual of the company's superannuation guarantee debt (rounded to nearest dollar).

PAYROLL ACCT.,2019 ED.(LL)-TEXT

19th Edition

ISBN:9781337619783

Author:BIEG

Publisher:BIEG

Chapter2: Computing Wages And Salaries

Section: Chapter Questions

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Barcoo Pty Ltd employs five (5) employees in its factory. GALLAGHER spends half his time delivering finished goods for the sales department. Half of the wages are paid by the sales department. All accounts are in a single ledger.

The following pay information relates to the week ended 11 June 2010.

Each employee normally works a 40 hour week. Any hours in excess of 40 are paid as overtime (at 1½ times the normal hourly rate). The supervisor is paid $20 per hour, and the remaining four employees $16 per hour.
The time sheet summary for the week to 8 June 2007 shows:

Employee		Hours	Total
Chong	Supervision		40

Dashwood	Job 01	36
	Cleaning	6	42

Edwards	Job 01	22
	Job 02	20	42

Ftelianos	Job 02	28
	Sick leave	4
	Maintenance	8	40
Gallagher	Materials store		40	204

The company reduces the appropriate accrual/provision for any leave paid. Payment of sick leave was approved for Ftelianos
PAYG tax withheld from all pays for the week totalled $1,036. There were no other payroll deductions.
The company accrues superannuation guarantee contributions at 9% of gross ordinary wages. ( calculate to the nearest whole dollar )
Overtime premium is charged to factory overhead, except for job 02 that is a rush order.

REQUIRED:

(a) Calculate the total gross payroll for the week ended 11 June 2010.

(b) Prepare general journal entries to record:

The allocation of the labour cost as direct and/or indirect.
The gross factory payroll for the week and the payment of net pays.
The accrual of the company's superannuation guarantee debt (rounded to nearest dollar).

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