Exam 3: Accounting for Labor

The Wagner Company's Schedule of Earnings and Payroll Taxes for May is summarized as follows: (a) Prepare the journal entry to distribute payroll under each of the following scenarios: (1) Overtime resulted from priority scheduling of Job 3bX for which the company received a rush order. (2) Overtime resulted from random scheduling of jobs. (b) Prepare the journal entry to record and distribute the employer's payroll taxes.

A factory worker earns $500 per week and will receive a $2,000 bonus at year-end, a 2-week paid vacation, and 5 paid holidays. The combined amount of the accruals for bonus, vacation, and holiday pay in the weekly payroll would be:

Joel Williams works at Allentown Company where he assembles components for small appliances and earns $16 per hour with "time-an-a-half" for overtime. During the week ended July 25, Joel worked 43 hours as follows: The amount of Joel's wages that will be charged to Factory Overhead assuming the overtime is due to the random scheduling of jobs is:

John Elton, who is classified as direct labor, earns $1,000 per week and is entitled to four weeks of vacation and 10 holidays each year. How much should be accrued for his holiday pay each week?

Under a modified wage plan, Jim Phillips works an eight-hour day and earns $.50 for each finished unit he produces in excess of 200 units. However, he is guaranteed $12.50 per hour as a minimum wage. His production this week was a follows: How much was the make-up guarantee paid to Jim this week?

The payroll summary for EVB Inc. for the period August 3 - 10 is as follows: The entry to record payroll would be:

An employee regularly earns $12 per hour for an 8-hour day with time-and-a-half for overtime hours. Assuming that the employee works a 10-hour day, the amount of overtime premium is:

If the amount of overtime premium is to be charged to all jobs worked on during the period as a result of random scheduling of jobs, the debit will be to:

Jay Vato works at Batwing Industries from midnight until 8:00 AM. His normal wage rate is $17 per hour, while Ben Phillips, who does the same job from 8:00 AM until 4:00 PM makes $15 per hour. Since Ben and Jay have the same seniority within the plant, the difference in pay is due to a(n):

Under a modified wage plan, an employee earns $.75 for each finished unit and is guaranteed $10 per hour as a minimum wage. If the daily quota is 100 units, on a particular day when an employee completes 85 units and works 8 hours, the amount of the make-up guarantee will be:

Harmony Company has accrued payroll costs of $50,000 for the period May 28 - 31 as follows: Other Information: (a) The FICA rate is 8% of the first $100,000 of wages. None of the employees has reached this maximum. (b) The company is responsible for state and federal unemployment taxes on the first $8,000 of wages. All of the employees have previously reached this maximum. (c) Payroll taxes are spread over all jobs. What entry would be necessary to accrue payroll taxes for the period of May 28 - 31?

Payroll records for selected employees of Tomco Industries for the forty-sixth week of the year are as follows: Employees are paid time-and-a-half for overtime. Employer payroll tax rates are as follows: FICA: 8% of first $100,000 of salary or wages FUTA: 1% of first $8,000 of salary or wages SUTA: 4% of first $8,000 of salary or wages Calculate: (a) Total gross payroll for the selected employees. (b) Total employer payroll taxes for the selected employees.

A wage plan based solely on an employee's quantity of production is known as a(n):

An accrued expense such as Wages Payable can best be described as an amount:

A direct laborer in a factory earns $1,000 each week. In addition, she will receive a $2,500 bonus at year end, a two-week paid vacation, and seven paid holidays. Prepare the entry to distribute her wages and the costs and liabilities related to bonus, vacation, and holiday pay. (Round all amounts to two decimal places.)

Tyler Jacob is paid $15 per hour for a 40-hour work week with time-and-a-half for overtime, which is not charged to specific jobs. For the week of March 4 - 10, Tyler's labor time record was as follows: Other Information: Tyler's year-to-date wages as of March 3 were $7,500. He contributes $20 weekly for his health insurance premiums. Current tax rates in effect are: FIT withholding rate - 10%; FICA - 8% on the first $100,000 of wages; SUTA - 4% on the first $8,000 of wages; and FUTA - 1% on the first $8,000 of wages. (a) Calculate Tyler's gross and net pay. (b) Prepare the journal entries necessary to (1) Record Tyler's payroll (2) Pay Tyler's payroll (3) Distribute Tyler's payroll to the appropriate accounts (c) Calculate the employer's payroll taxes and prepare the journal entry to record them employer's portion of payroll taxes

Jerrod Sampson is paid $10 an hour for 40 hours a week, with time-and-a-half for overtime and double-time for Sundays and holidays. Overtime premium is charged to Factory Overhead. Using the labor-time record below: a. Compute Jerrod's total earnings for the week. b. Present the journal entry to distribute Jerrod's total earnings.SUTA = 4%, FUTA = 1%, FICA = 8%, FIT = 10%

The Dehl Company payroll for the first week in January was $12,000. The amount of income tax withheld was 12 percent and the FICA, state unemployment, and federal unemployment tax rates were 8 percent, 5 percent, and 1 percent, respectively. The amount of the employer's payroll taxes are:

The payroll for the week ended January 8 is $15,000 with 15 percent withheld for employee income taxes and 8 percent for FICA taxes. The total amount of taxes to be remitted by the employer for this payroll would be:

The departmental responsibilities of the payroll function include all of the following except: