Principles of Cost Accounting
17th Edition
ISBN: 9781305087408
Author: Edward J. Vanderbeck, Maria R. Mitchell
Publisher: Cengage Learning
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Chapter 3, Problem 14P
Using the information in P3-13, prepare the entries to 1) distribute the weekly payroll, and 2) record the costs and liabilities related to the bonus, vacation, and holiday pay, assuming that the
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Assume that you are working with a payroll application that produces weekly paychecks, including paystubs. Listed below are 20 data elements that would appear on the paycheck/paystub. For each numbered item, indicate the immediate (versus ultimate) source of the item. For instance, the immediate source of the number of exemptions for an employee would be the employee master data, as opposed to the ultimate source, which is the W-4 form filed by the employee. Some items may have more than one source, as in the case of item 1. You have the following choices: Arrange your answer as follows: The items to be considered are as follows:
In recording the payroll, the debit to an expense represents:
Group of answer choices
deductions
gross pay
net pay
earnings over the calendar year for each employee
E3-12 Employees' earnings and taxes.A weekly payroll summary made from labor time records shows the following data for Pima Company:
Hours
Employee Classification Hourly Rate Regular Overtime
Tu, H. Direct $12 40 2
Dante, J. Direct 12 40 3
Jamal, M. Direct 15 40 4
Marcus, L. Indirect 9 40
Alexander, T. Indirect 18 40
Overtime is payable at one-and-a-half times the regular rate of and is distributed to all jobs worked on during the period.
A. Determine the net pay of each employee. The income taxes with- held for each employee amount to 15% of the gross wages.
B. Prepare journal entries for the following:
1. Recording the payroll.
2. Paying the…
Chapter 3 Solutions
Principles of Cost Accounting
Ch. 3 - What is the difference between direct and indirect...Ch. 3 - Prob. 2QCh. 3 - Prob. 3QCh. 3 - In production work teams, output is dependent upon...Ch. 3 - Define productivity.Ch. 3 - Prob. 6QCh. 3 - Prob. 7QCh. 3 - Prob. 8QCh. 3 - Prob. 9QCh. 3 - What are the sources for posting direct labor cost...
Ch. 3 - What are the sources for posting indirect labor...Ch. 3 - In accounting for labor costs, what is the...Ch. 3 - Prob. 13QCh. 3 - Prob. 14QCh. 3 - Besides FICA, FUTA and state unemployment taxes,...Ch. 3 - Prob. 16QCh. 3 - Prob. 17QCh. 3 - Prob. 18QCh. 3 - What is a shift premium, and how is it usually...Ch. 3 - Prob. 20QCh. 3 - Prob. 21QCh. 3 - Prob. 22QCh. 3 - Prob. 23QCh. 3 - Prob. 24QCh. 3 - Prob. 25QCh. 3 - R. Herbert of Crestview Manufacturing Co. is paid...Ch. 3 - Recording payroll Using the earnings data...Ch. 3 - Prob. 3ECh. 3 - Peggy Nolan earns 20 per hour for up to 300 units...Ch. 3 - Overtime Allocation Arlin Fabrication Company...Ch. 3 - Prob. 6ECh. 3 - Davis, Inc. paid wages to its employees during the...Ch. 3 - Recording the payroll and payroll taxes Using the...Ch. 3 - Prob. 9ECh. 3 - The total wages and salaries earned by all...Ch. 3 - The total wages and salaries earned by all...Ch. 3 - A weekly payroll summary made from labor time...Ch. 3 - Prob. 13ECh. 3 - Accounting for bonus and vacation pay Cathy Muench...Ch. 3 - Prob. 15ECh. 3 - Prob. 16ECh. 3 - Payroll computation with incentive bonus Fifteen...Ch. 3 - Prob. 2PCh. 3 - Prob. 3PCh. 3 - Payroll for piece-rate wage system Collier...Ch. 3 - A rush order was accepted by Bartley's Conversions...Ch. 3 - The following form is used by Matsuto...Ch. 3 - Payment and distribution of payroll The general...Ch. 3 - Prob. 8PCh. 3 - An analysis of the payroll for the month of...Ch. 3 - Prob. 10PCh. 3 - Prob. 11PCh. 3 - Prob. 12PCh. 3 - Prob. 13PCh. 3 - Using the information in P3-13, prepare the...Ch. 3 - Pan-Am Manufacturing Co. prepares cost estimates...Ch. 3 - Incentive wage plan David Kelley is considering...Ch. 3 - Huron Manufacturing Co. uses a job order cost...
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- A weekly payroll summary made from labor time records shows the following data for Pima Company: Overtime is payable at one-and-a-half times the regular rate of pay and is distributed to all jobs worked on during the period. a. Determine the net pay of each employee. The income taxes withheld for each employee amount to 15% of the gross wages. b. Prepare journal entries for the following: 1. Recording the payroll. 2. Paying the payroll. 3. Distributing the payroll. (Assume that the overtime premium will be charged to all jobs worked on during the period.) 4. The employers payroll taxes. (Assume that none of the employees has achieved the maximum wage bases for FICA and unemployment taxes.)arrow_forwardThe W-4, which shows total annual earnings and deductions for federal and state income taxes, must be completed by the employer and given to the employee by January 31.arrow_forwardThe following form is used by Matsuto Manufacturing Co. to compute payroll taxes incurred during April: Required: 1. Using the above form, calculate the employers payroll taxes for April. Assume that none of the employees has achieved the maximums for FICA and unemployment taxes. 2. Assuming that the employer payroll taxes on factory wages are treated as factory overhead, the taxes covering administrative salaries are an administrative expense, and the taxes covering sales salaries are a selling expense, prepare a general journal entry to record the employer's liability for the April payroll taxes.arrow_forward
- In the space provided below, prepare the journal entry to record the November payroll for all employees assuming that the payroll is paid on November 30 and that Joness cumulative gross pay (cell I13) is 85,000.arrow_forwardWallace Corporation summarizes the following information from its weekly payroll records during April. Prepare the two journal entries to record the payment of the payroll and the accrual of its payroll taxes for April. Assume an 8% FICA rate for both employees and the employer. Also assume a 5.4% state unemployment tax rate, a 0.6% federal unemployment tax rate, and that all wages are subject to all payroll taxes. Round to the nearest dollar.arrow_forwardThe total wages and salaries earned by all employees of James Industries during the month of February, as shown in the labor cost summary and the schedule of fixed administrative and sales salaries, are classified as follows: a. Prepare a journal entry to distribute the wages earned during February. b. What is the total amount of payroll taxes that will be imposed on the employer for the payroll, assuming that three administrative employees with combined earnings this period of 4,500 have exceeded 8,000 in earnings prior to the period?arrow_forward
- The total wages and salaries earned by all employees of Langen Electronics, Ltd. during March, as shown in the labor cost summary and the schedule of fixed administrative and sales salaries, are classified as follows: a. Prepare a journal entry to distribute the wages earned during March. b. What is the total amount of payroll taxes that will be imposed on the employer for the payroll, assuming that two administrative employees with combined earnings this period of 3,000 have exceeded 8,000 in earnings prior to the period?arrow_forwardYou have been asked to record the November payroll information using a payroll register and a general journal. Review the printout of the worksheet PR, a computerized payroll register, that follows these requirements. The columns will automatically retotal as new entries are made. Entries in column B indicate whether or not employees are union members. Assume Joness cumulative gross pay at October 31 could be 85,000, or 105,000, or 125,000.arrow_forwardBased on the information in problem 2, calculate and record the employers payroll taxes for the period in the general journal below. The state employment tax rate is 5.4 percent, and the federal unemployment tax rate is 0.8 percent.arrow_forward
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How JOURNAL ENTRIES Work (in Accounting); Author: Accounting Stuff;https://www.youtube.com/watch?v=Y-_Q3rANyxU;License: Standard Youtube License