Problem 2: Following are the particulars for March, 2019 relating to four employees working in department of a factory, exclusively for Job. No 434: Wages $ Name Designation Per A Foreman 800 month Mechanic 15 day Machine Operator 12 day D Workman 10 day The normal working hours per week of six days are 48, at 8 hours per day. Sundays are paid holidays. (There was only one holiday other than Sundays, for which the employees are not paid any thing except the foreman). Provident fund contribution was 8% of monthly wages by employee and employer each. Employees State Insurance contribution was 3% of monthly wages by employee and 5% of monthly wages by employer. From the foregoing data, calculate : (a) Net wages payable (to employees) by the employer for the month; (b) The total amount of provident fund contribution to be deposited by employer; (c) Employees state insurance contribution to be deposited by employer;

Problem 2: Following are the particulars for March, 2019 relating to four employees working in department of a factory, exclusively for Job. No 434: Wages $ Name Designation Per A Foreman 800 month Mechanic 15 day Machine Operator 12 day D Workman 10 day The normal working hours per week of six days are 48, at 8 hours per day. Sundays are paid holidays. (There was only one holiday other than Sundays, for which the employees are not paid any thing except the foreman). Provident fund contribution was 8% of monthly wages by employee and employer each. Employees State Insurance contribution was 3% of monthly wages by employee and 5% of monthly wages by employer. From the foregoing data, calculate : (a) Net wages payable (to employees) by the employer for the month; (b) The total amount of provident fund contribution to be deposited by employer; (c) Employees state insurance contribution to be deposited by employer;

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter3: Accounting For Labor

Section: Chapter Questions

Problem 3P

See similar textbooks

Similar questions

Kelsey Gunn is the only employee of Arsenault Company. His pay rate is 23.00 per hour with an overtime rate of 1 times for hours over 40 in a workweek. For the week ending March 31, 20--, he worked 48 hours. Calculate his gross pay for the week using the overtime premium approach to calculate the overtime pay. Since the company holds back one week of pay, Gunn will not be paid until April 7, 20--. What adjusting entry would the company make in order to record Gunns salary in the first quarter of this year? a. Regular pay....................................................................... ________ b. Overtime premium pay..................................................... ________ c. Gross pay.......................................................................... ________ d. Adjusting entry
Potts, Inc., recently converted from a 5-day, 40-hour workweek to a 4-day, 40-hour workweek, with overtime continuing to be paid at one and one-half times the regular hourly rate for all hours worked beyond 40 in the week. In this company, time is recorded under the continental system, as shown on the time card on the following page. Sue Ellen Boggs is part of the Group B employees whose regular workweek is Tuesday through Friday. The working hours each day are 800 to 1200; 1230 to 1630; and 1800 to 2000. The company disregards any time before 800, between 1200 and 1230, and between 1630 and 1800, and permits employees to ring in up to 10 minutes late before any deduction is made for tardiness. Deductions are made to the nearest of an hour for workers who are more than 10 minutes late in ringing in. Refer to the time card and compute: a. The daily total hours ..........................................................................___________ b. The total hours for the week ...............................................................___________ c. The regular weekly earnings ................................................................___________ d. The overtime earnings (company rounds O.T. rate to 3 decimal places)___________ e. The total weekly earnings .....................................................................__________
Huron Manufacturing Co. uses a job order cost system to cost its products. It recently signed a new contract with the union that calls for time-and-a-half for all work over 40 hours a week and double-time for Saturday and Sunday. Also, a bonus of 1% of the employees earnings for the year is to be paid to the employees at the end of the fiscal year. The controller, the plant manager, and the sales manager disagree as to how the overtime pay and the bonus should be allocated. An examination of the first months payroll under the new union contract provisions shows the following: Analysis of the supporting payroll documents revealed the following: a. More production was scheduled each day than could be handled in a regular workday, resulting in the need for overtime. b. The Saturday and Sunday hours resulted from rush orders with special contract arrangements with the customers. The controller believes that the overtime premiums and the bonus should be charged to factory overhead and spread over all production of the accounting period, regardless of when the jobs were completed. The plant manager favors charging the overtime premiums directly to the jobs worked on during overtime hours and the bonus to administrative expense. The sales manager states that the overtime premiums and bonus are not factory costs chargeable to regular production but are costs created from administrative policies and, therefore, should be charged only to administrative expense. Required: 1. Evaluate each positionthe controllers, the plant managers, and the sales managers. If you disagree with all of the positions taken, present your view of the appropriate allocation. 2. Prepare the journal entries to illustrate the position you support, including the accrual for the bonus.
Wages Payable Denton Corporation employs 50 workers in its plant. Each employee is paid $10 per hour and works seven hours per day, Monday through Friday. Employees are paid every Friday. The last payday was Friday, September 19. Required Compute the dollar amount of the weekly payroll. Prepare the journal entry on Friday, September 26, for the payment of the weekly payroll. Denton prepares monthly financial statements. Prepare the adjusting journal entry on Tuesday, September 30, the last day of the month. Prepare the journal entry on Friday, October 3, for the payment of the weekly payroll. Will net income for the month of September be understated or overstated if Denton doesnt bother with an adjusting entry on September 30? Explain your answer.
R. Herbert of Crestview Manufacturing Co. is paid at the rate of 20 an hour for an eight-hour day, with time-and-a-half for overtime and double-time for Sundays and holidays. Regular employment is on the basis of 40 hours a week, five days a week. At the end of a week, the labor time record shows the following: Because jobs are randomly scheduled for the overtime period, any overtime premium is charged to Factory Overhead. a. Compute Herberts total earnings for the week. b. Present the journal entry to distribute Herberts total earnings. (Note: These single journal entries here and in E3-2, E3-3, E3-4, E3-8 and E3-9 are for the purpose of illustrating the principle involved. Normally, the entries would be made for the total factory payroll plus the administrative and sales payroll.)
Costa, Inc., recently converted from a 5-day, 40-hour workweek to a 4-day, 40-hour workweek, with overtime continuing to be paid at one and one-half times the regular hourly rate for all hours worked beyond 40 in the week. In this company, time is recorded under the continental system, as shown on the time card on the following page. Barbara Bansta is part of the Group B employees whose regular workweek is Tuesday through Friday. The working hours each day are 800 to 1200; 1230 to 1630; and 1800 to 2000. The company disregards any time before 800, between 1200 and 1230, and between 1630 and 1800, and permits employees to ring in up to 10 minutes late before any deduction is made for tardiness. Deductions are made to the nearest of an hour for workers who are more than 10 minutes late in ringing in. Refer to the time card and compute: a. The daily total hours ..........................................................................___________ b. The total hours for the week ...............................................................___________ c. The regular weekly earnings ................................................................___________ d. The overtime earnings (company rounds O.T. rate to 3 decimal places)___________ e. The total weekly earnings .....................................................................__________
Employees at Rayon Enterprises earn one day a month of vacation compensation (twelve days total each year). Vacation compensation is paid at an hourly rate of $45, based on an eight-hour work day. Rayons first pay period is January. It is now April 30, how much vacation liability has accumulated if the company has four employees and no vacation compensation has been paid? A. $1,440 B. $4,320 C. $5,760 D. $7,200
Accounting for bonus and vacation pay Cathy Muench a factory worker, earns 1,000 each week. In addition, she will receive a 4,000 bonus at year-end and a four-week paid vacation. Prepare the entry to record the weekly payroll and the costs and liabilities related to the bonus and the vacation pay, assuming that Muench is the only employee.
Calculate an employees total earnings if the company pays time-and-a-half when Jill Smith works 41 hours at 15 per hour. a. 600.00 b. 615.00 c. 622.50 d. 635.00 e. None of the above
Kyle Forman worked 47 hours during the week for Erickson Company at two different jobs. His pay rate was 14.00 for the first 40 hours, and his pay rate was 11.80 for the other 7 hours. Determine his gross pay for that week if the company uses the one-half average rate method. a. Gross pay__________ b. If prior agreement existed that overtime would be paid at the rate for the job performed after the 40th hour, the gross pay would be________
Jody Baush is a salaried employee who normally works a 35-hour week and is paid a weekly salary of 735.00. The agreement that he has with his employer states that his salary is to cover all hours worked up to and including 40. This week, Baush worked 42 hours. Calculate his gross pay. Gross pay_________
Barbara Ripa receives 695 for a regular 40-hour week and time and one-half for overtime. For a workweek of 45 hours, compute: a. The regular earnings________ b. The overtime earnings________ c. The total earnings________