CHAPTER-8 DE LEON 2014

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

Direct materials Direct labor Factory overhead Overtime Total

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

CHARGED TO FOC Other factory costs Overtime Total

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 Employe e Austria Bautista DeSantos Motus Reyes TOTAL Employe e Austria Bautista DeSantos Motus Reyes

No. Hr s 86 88 88 80 80

Rate 36.00 36.00 45.00 30.00 30.00

Regular Pay

OT Hours

3,096 3,168 3,960 2,400 2,400 15,024

6 8 8 -

Total Pay

WTax

SSS

3,204 3,312 4,140 2,400 2,400

91.23 102.03 15.85

109.00 127.20 145.30 90.80 90.80

Rate

Overtime Premium

18.00 18.00 22.50 -

Pagibi g 96.12 99.36 100.00 72.00 72.00

108.00 144.00 180.00 -__ 432.00 PH 100 100 100 100 100

Total Pay 3,204 3,312 4,140 2,400 2,400___ 15,456

Total Deductio ns 396.35 428.59 345.30 262.80 278.65__

Net Pay 2,807.65 2,883.41 3,794.70 2,137.20 2,121.35

TOTAL 15,456 Withholding tax Austria

209.11

563.10 439.48

500

3,204 2,500 704 x 10%

Bautista

3.312 2,500 812 x 10%

Reyes

1,711.69

13,744.31

20.83 70.40 91.23 20.83 81.20 102.03

2,400 2,083 317 x 5%

b) 1.

15.85 Payroll WTax Payable SSS Prem. Payable Pag-ibig Contributions Payable Philhealth Contributions Payable Accrued payroll

15,456 209.11 563.10 439.48 500.00 13,744.31

2.

Accrued payroll Cash

13,744.31 13,744.31

3.

Work in process (3,096+3,168+3,960) FOC (2,400+2,400+432 ) Payroll

10,224 5,232 15,456

Problem 3 - Norman Company Employe e Cruz Briones David Mendoze Rivera Tolentino TOTAL

Guarantee d Wage 2,000 2,000 2,000 2,000 2,000 2,000 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)

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 -

Deficienc y 200 200 312,50 -___ 712.50

11,632.50 712,50

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

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. REG HRS . 80 85 88 88 85

Employee Castro Ardina Briones David Fajardo TOTAL

426

Continuation Employee

Total Pay

Castro Ardina Briones David Fajardo

28,800 29,500 28,800 27,300 25,925

TOTAL

140,325

Castro Total pay

Ardina Total pay

Briones Total pay

LAR RATE

PAY

150.00 160.00 150.00 150.00 150.00

12,000.00 13,600.00 13,200.00 13,200.00 12,750.00

5 8 8 5

64,750.00

26

760.00

OT HRS.

OT PAY RATE

TOTAL PAY

80.00 75.00 75.00 75.00

12,000.00 14,000.00 13,800.00 13,800.00 13,125.00

400.00 600.00 600.00 375.00

-__ 305.00 1,975.00

66,725.00

SSS W/holdin Prem. g Tax 581.30 7,378.89 581.30 6,314.89 581.30 6,757.77 581.30 6,610.89 581.30 6,170.89

Phil. Pag- Total Health ibig Deduct 350.00 362.50 350.00 337.50 312.50

100.00 100.00 100.00 100.00 100.00

8,410.19 7,358.69 7,789.07 7,629.69 7,164.69

3,589.81 6,641.31 6,010.93 6,170.31 5,960.31

2,906.5 0

1,712.50

500.00

38,352.33

28,372.67

33,233.33

28,800 22,017 6,783 x 32% 29,500 26,042 3,458 x 32% 28,800

- 5,208.33 2,170.56 7,378.89 5.208.33 1,106.56 6,314.89

Net Pay

23,958 4,842 x 32%

David Total pay

27,300 22,917 4,383 x 32%

Fajardo Total pay

2.

5,208.33 1,549.44 6,757.77

25.925 22,917 3,008 x 32%

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

5,208.33 1,402.56 6.610.89 5,208.33 962.56 6,170.89 66,725 33,233.33 2,906.50 1,712.50 500.00 28,372.67

Accrued payroll Cash

28,372.67 28,372.67

Work in process Factory overhead control (12,000 + 1,975) Payroll

52,750 13,975

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

6. 7. 8. 9. 10.

a d d a c

11. 12. 13. 14. 15.

66,725

b c 692,500 d d