5. Mr. Combate, a factory laborer earns P18,000 per month, and the company pays one month salary as a bonus at the end of the year. Mr. Combate is entitled to a half month paid vacation leave. The company also pays P4,000 a year into a pension fund of the worker. All fringe benefits of factory laborer are charged to the factory overhead account. The fringe benefits are charged to production during the 11 1/2 months the employee is at work. Required: Compute the total liability for fringe benefits and prepare journal entries to record the incurrence of labor cost, distribution and fringe benefit liabilities.
5. Mr. Combate, a factory laborer earns P18,000 per month, and the company pays one month salary as a bonus at the end of the year. Mr. Combate is entitled to a half month paid vacation leave. The company also pays P4,000 a year into a pension fund of the worker. All fringe benefits of factory laborer are charged to the factory overhead account. The fringe benefits are charged to production during the 11 1/2 months the employee is at work. Required: Compute the total liability for fringe benefits and prepare journal entries to record the incurrence of labor cost, distribution and fringe benefit liabilities.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
what is the answer in number 5?
Transcribed Image Text:Activity 4- Accounting for Labor
1. JYD Accounting Firm pays its employees at a rate of P50/hr. The tax and other deductions amount
to 20% of monthly income in excess of P1,000 if an employee works 40 hours in a 120 hours in a
month.
Required : Compute the following:
A. Gross Pay
B. Net Pay
2. Richard Corp has the following data for the third week of December:
Employee Name Classification
Hours Worked
Rate per hour
A. Kuhol
B. Aileen
C. Jose
Laborer
45
50
Office Secretary
46
45
Laborer
50
52
Factory Supervisor
Sales agent
Laborer
D. Jay
55
48
E. Richmond
52
60
F. Edward
48
45
The following are to be deducted to the gross earnings of employees:
Witholding taxes
SSS contributions
5%
3%
Philhealth
1%
Pag-ibig
1%
Richard Corp paid its employees one and half times the regular rate for hours worked in excess of 40
hours.
Required: Prepare Journal Entries to record
A. Payroll
B. Labor distribution
3. Mr. Koala, a factory worker is paid P150 per hour for a regular work of 40 hours. During the week,
Mr. Koala worked 45 hours and earned time and a half for overtime hours.
Required: Prepare Journal Entries
A. If overtime premium is charged to the jobs worked during the overtime hours.
B. If the overtime premium is not charged to specific jobs.
4. Peter Senen Corp has the following data for the fourth week of March
Hours Worked
Employee Name Hourly Rate Sun Mon Tue
Wed
Thurs
Fri
Sat
Total
Kris
900
8
8
8
8
8
8
54
Bryan
950
8
7
10
9
8
49
Rose
750
1.
8
9.
10
9
8
53
Tess
900
8
10
8
8
8
56
Jose
1,000
9
8
8
6
7
10
8
56
The rate for hours in excess of 40 is one and half times the regular rate. The rate for hours worked on
Sunday is twice the regular rate.
Required: compute the gross earnings of each employee.
Transcribed Image Text:5. Mr. Combate, a factory laborer earns P18,000 per month, and the company pays one month salary
as a bonus at the end of the year. Mr. Combate is entitled to a half month paid vacation leave. The
company also pays P4,000 a year into a pension fund of the worker. All fringe benefits of factory
laborer are charged to the factory overhead account. The fringe benefits are charged to production
during the 11 1/2 months the employee is at work.
Required: Compute the total liability for fringe benefits and prepare journal entries to record
the incurrence of labor cost, distribution and fringe benefit liabilities.
6. JYD Corp. Has the following data for the month of March 2021:
Gross Payroll
Employee's deductions:
SSS Contribution
1,000,000
20,000
10,000
10,000
Philhealth Contribution
Pag-ibig Contribution
Witholding taxes
100,000
The employer contributions are as follows:
SSS contribution
Philhealth contribution
40,000
10,000
Pag-ibig contribution
10,000
The company distributes its total payroll as follows: 50% to direct labor, 20% to indirect labor, 25% to
administrative and 5% to Sales salary. The company also apportions employer's contribution as
follows: 70% to factory overhead,25% to administrative and 5% to selling expenses.
Required: Prepare the journal entries for:
A. Labor Incurrence
B. Labor Distribution
C. To record employer's contribution
D. Payment of accrued payroll
7. The following data on XYZ Corp workers idle time are as follows:
Normal Idle Time
Abnormal Idle Time
Wage Rate per hour
Hans, Factory supervisor 6
Cielo, Factory laborer
Heinthji, Factory laborer 8
2
400
8
2
250
2
250
Required: Prepare the journal entry to record the idle time of the three workers.
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