Answers to Cost Accounting Chapter 8

CHAPTER 8 - ACCOUNTING FOR LABOR TRUE/FALSE 1. True 2. False 3. False 4. False 5. False

6. 7. 8. 9. 10.

False True True True True

Problem 1 - Evergreen Company A) 1. CHARGED TO THE JOB 2. CHARGED TO FACTORY OVERHEAD CONTROL

Direct materials Direct labor Factory overhead Overtime Total

CHARGED JOB 401 28,000 18,000 5,600 ______ 51,600

CHARGED TO FOC Other factory costs Overtime Total

TO JOB JOB 402 37,000 23,000 11,200 6,000 77,200

P 16,800 6,000 P 22,800

CHARGED JOB 401 28,000 18,000 7,600 ______ 53,600

TO FOC JOB 402 37,000 23,000 15,200 ______ 75,200

x 1/3 X 2/3

Problem 2 No. Regular OT Employee Hrs Rate Pay Hours Austria 42 36.00 1,512 2 Bautista 43 36.00 1,548 3 DeSantos 44 45.00 1,980 4 Motus 40 30.00 1,200 Reyes 40 30.00 1,200 TOTAL 7,440 b) 1. Payroll Accrued payroll 2.

3.

Rate 18.00 18.00 22.50 -

Overtime Premium 36.00 54.00 90.00 -__ 180.00

Total Pay 1,548 1,602 2,070 -___ 7,620 7,620 7,620

Accrued payroll Cash

7,620

Work in process (1,512 + 1,548 + 1,980) FOC (1,200 + 1,200 + 180 ) Payroll

5,040 2,580

7,620

7,620

Page 2 Problem 3 - Norman Company Employee Guaranteed Wage Cruz 2,000 Briones 2,000 David 2,000 Mendoze 2,000 Rivera 2,000 Tolentino 2,000 TOTAL 12,000

Total pay – piece rate (240 x 7.50) (286 x 7.50) (275 x 7.50) (240 x 7.50) (225 x 7.50) (285 x 7.50)

Deficiency

1,800 2,145 2,062.50 1,800 1,687.50 2,137.50 11,632.50

2. Charged to Work in process 3. Charged to factory overhead account -

Total Payroll 2,000.00 2,145.00 2,062.50 2,000.00 2,000.00 2,137.50 12,345.00

200 200 312,50 -___ 712.50

11,632.50 712,50

Problem 4 - Ty-Nee Trailer Company Deductions were computed on the assumption that previous payment of wages were made without deductions and all deductions are made on the last payment for the month.

Employee Castro Ardina Briones David Fajardo Tomas Villas TOTAL

REGU HRS. 42 45 48 48 45 42 40

LAR RATE 40.00 50.00 40.00 40.00 40.00 40.00 40.00

Continuation Employee Total SSS Pay Prem. Castro 1,720.00 250.00 Ardina 2,375.00 333.30 Briones 2,080.00 283.30 David 2,080.00 283.30 Fajardo 1,900.00 266.70 Tomas 1,720.00 250.00 Villas 1,600.00 233.30 TOTAL 13,475.00 1899.90 Castro

PAY 1,680.00 2,250.00 1,920.00 1,920.00 1,800.00 1,680.00 1,600.00 12,850.00

OVER TIME HRS. RATE 2 20.00 5 25.00 8 20.00 8 20.00 5 20.00 2 20.00 -

W/holding Phil. Tax Health 681.28 87.50 614.53 112.50 840.93 100.00 865.33 100.00 603.38 87.50 461.38 87.50 438.28 75.00 4,505.11 650.00

PAY 40.00 125.00 160.00 160.00 100.00 40.00 -__ 625.00

Pagibig 100.00 100.00 100.00 100.00 100.00 100.00 100.00 700.00

TOTAL PAY 1,720.00 2,375.00 2,080.00 2,080.00 1,900.00 1,720.00 1,600.00 13,475.00

Total Net Deduct Pay 1,118.78 601.22 1,160.33 1214.67 1,324.23 755.77 1,348.63 731.37 1,057.58 842.42 898.88 821.12 846.58 753.42 7,755.01 5719.99

Total pay (5,600 + 1,720) 7,320 ( 4,167) - 208.33 3,153 x 15% - 472,95 681.28 Ardina Total pay (7,500 + 2,375) 9,875 ( 7,167) 208.33 2,708 x 15% 406.20 614.53 Briones Total pay (6,500 + 2,080) 8,580 (7,917) 708.33 663 x 20% 132,60 840.93 David Total pay (6,200 + 2,080) 8,280 ( 7,500) 708.33 780 x 20% 156.00 864.33 Fajardo Total pay (5,900 +1,900) 7,800 ( 5,167) 208.33 2,633 x 15% 394.95 603.38 Tomas Total pay (5,800 + 1,720) 7,520 ( 5,833) 208.33 1,687 x 15% 253.05 461.38 Villas Total pay (5,200 + 1,600)

2.

6,800 (5,267) 208.33 1,533) x 15% 229.95 438.28

Payroll W/holding tax payable SSS Premiums payable Phil Health Contributions payable Pag-ibig funds contributions payable Accrued payroll

13,475.00 4,505.11 1,899.90 650.00 700.00 5,719.99

Accrued payroll Cash

5,719.99 5,719.99

Work in process (12,850 – 1,680) Factory overhead control (1,680 + 625) Payroll

MULTILE CHOICE 1. b 2. b 3. a 4. b. 5. a `

6. 7. 8. 9. 10.

a d d a c

11,170.00 2,305.00 13,475

11. 12. 13. 14.

b c` 692,500 d