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

Direct materials Direct labor Factory overhead Overtime Total

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. Employee Hrs Austria 86 Bautista 88 DeSantos 88 Motus 80 Reyes 80 TOTAL

Rate 36.00 36.00 45.00 30.00 30.00

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

OT Hours 6 8 8 -

Rate 18.00 18.00 22.50 -

Overtime Premium 108.00 144.00 180.00 -__ 432.00

Total Employee Pay

WTax

SSS

Pagibig

Austria 3,204 Bautista 3,312 DeSantos 4,140 Motus 2,400 Reyes 2,400 TOTAL 15,456

91.23 102.03 15.85 209.11

109.00 127.20 145.30 90.80 90.80 563.10

96.12 99.36 100.00 72.00 72.00 439.48

PH 100 100 100 100 100 500

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__ 1,711.69

Net Pay 2,807.65 2,883.41 3,794.70 2,137.20 2,121.35 13,744.31

Withholding tax Austria

3,204 2,500 704 x 10%

Bautista

3.312 2,500 812 x 10%

Reyes

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

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

209.11 563.10 439.48 500.00 13,744.31

15,456

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)

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 -

Deficiency 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. REGU HRS. 42 45 48 48 45 42 40

Employee Castro Ardina Briones David Fajardo Tomas Villas TOTAL

LAR RATE 40.00 50.00 40.00 40.00 40.00 40.00 40.00

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 -

Continuation Employee Castro Ardina Briones David Fajardo Tomas Villas TOTAL

PAY 40.00 125.00 160.00 160.00 100.00 40.00 -__ 625.00

Total SSS W/holding Phil. PagPay Prem. Tax Health ibig 1,720.00 250.00 681.28 87.50 100.00 2,375.00 333.30 614.53 112.50 100.00 2,080.00 283.30 840.93 100.00 100.00 2,080.00 283.30 865.33 100.00 100.00 1,900.00 266.70 603.38 87.50 100.00 1,720.00 250.00 461.38 87.50 100.00 1,600.00 233.30 438.28 75.00 100.00 13,475.00 1899.90 4,505.11 650.00 700.00

Castro 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

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

864.33 Fajardo Total pay (5,900 +1,900) 7,800 ( 5,167) 2,633 x 15%

208.33 394.95 603.38

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. 15.

b c` d d d