Gain Sharing Plans. A company recorded sales of P9,810,000 for the 1st quarter. Inventory for sale amounted to P350,000. The company incurred an actual cost of P7,600,000. For the following quarter of operations, the company recorded sales of P7, 860,000 and incurred a cost of P6, 835,000. Inventory amounted to P580,000. The company allows cost amounting of 80% of sales value of production. The company uses Scanlon plan to incentivize its employees. Compute for the bonus to be distributed to employees, company share and the amount reserve if the employees received 60% of the gain and 20% of it becomes part of the reserve. Assume that there are 116,000 participating employees. Use the sample Scanlon Plan format in the discussions.
Gain Sharing Plans. A company recorded sales of P9,810,000 for the 1st quarter. Inventory for sale amounted to P350,000. The company incurred an actual cost of P7,600,000. For the following quarter of operations, the company recorded sales of P7, 860,000 and incurred a cost of P6, 835,000. Inventory amounted to P580,000. The company allows cost amounting of 80% of sales value of production. The company uses Scanlon plan to incentivize its employees. Compute for the bonus to be distributed to employees, company share and the amount reserve if the employees received 60% of the gain and 20% of it becomes part of the reserve. Assume that there are 116,000 participating employees. Use the sample Scanlon Plan format in the discussions.
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 9.2.1P
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Gain Sharing Plans. A company recorded sales of P9,810,000 for the 1st quarter. Inventory for sale amounted to P350,000. The company incurred an actual cost of P7,600,000. For the following quarter of operations, the company recorded sales of P7, 860,000 and incurred a cost of P6, 835,000. Inventory amounted to P580,000. The company allows cost amounting of 80% of sales value of production. The company uses Scanlon plan to incentivize its employees. Compute for the bonus to be distributed to employees, company share and the amount reserve if the employees received 60% of the gain and 20% of it becomes part of the reserve. Assume that there are 116,000 participating employees. Use the sample Scanlon Plan format in the discussions.
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