E3-3 Modified wage plan. Randy Wetzel earns $30 per hour for up to 500 units of production per day. If he produces more than 400 units per day, he will receive an additional piece rate of $0.55per unit. Assume that his hours worked, and pieces finished for the week just ended were as follows: Day Hours Worked Pieces Finished Monday 8 415 Tuesday 8 400 Wednesday 8 525 Thursday 8 300 Friday 8 440 a.Determine Wetzel’s earnings for each day and for the week. b.Prepare the journal entry to distribute the payroll, assuming that any make-up guarantees are charged to Factory Overhead.
E3-3 Modified wage plan.
Randy Wetzel earns $30 per hour for up to 500 units of production per day. If he produces more than 400 units per day, he will receive an additional piece rate of $0.55per unit. Assume that his hours worked, and pieces finished for the week just ended were as follows:
Day Hours Worked Pieces Finished
Monday 8 415
Tuesday 8 400
Wednesday 8 525
Thursday 8 300
Friday 8 440
a.Determine Wetzel’s earnings for each day and for the week.
b.Prepare the
E3-6 Journal entries for payroll
A partial summary of the payroll data for Long Inds. for each week of Juneis as follows:
7-Jun 14-Jun 21-Jun 28-Jun
Gross earnings $35,550 $31,770 $34,425 $36,180
Deductions:
FICA tax 8% ? ? ? ?
Income Tax $4,250 $3,980 $4,000 $4,375
Health Insurance 950 950 950 950
Tax Sheltered annuity 1,900 1,800 1,925 1,800
Total deductions ? ? ? ?
Net earnings????
a.Compute the missingamounts in the summary, assuming that no employeeshave reached the $120,000 FICA maximum.
b.Foreach payroll period, prepare journal entries to (1) record the payroll and (2) record the paymentsto employees.
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