**Payroll Accounting Exercise: McLoyd Company**McLoyd Company completed the salaries and wages payroll for March. The payroll provided the following details:- **Salaries and wages earned**: $550,000- **Employee income taxes withheld**: $50,875- **FICA taxes withheld**: $39,325- **Unemployment taxes**: $3,825**Required:**1. **Calculate Total Labor Cost**: Considering both employee and employer payroll taxes, use the preceding information to calculate the total labor cost for the company for March.2. & 3. **Journal Entry Preparation**: Prepare the journal entry to record the payroll for March, including employee deductions (but excluding employer payroll taxes) and record employer’s FICA taxes and unemployment taxes.

Payroll: It refers to a list of all the employees working in the business and the compensation that is to be paid to each of the employees for the work performed including the gross salaries and wages, additional overtime expense, and the deductions to be made from the salaries of each of the employees. Total labor cost = [Salaries & wages + FICA taxes + Umeployment taxes] = [$550,000 + $39,325 + $3,825] = $593,1501. The total labor cost for the month of March amounts to $593,150.2 & 3 The journal entry to record the payroll, as follows:Date General Journal Debit Credit March 31, Salaries and Wages $550,000 FICA Taxes payable $39,325 Income Taxes withheld payable $50,875 Salaries and Wages payable $459,800 (Being the salaries and wages expense recorded)March 31, Payroll Tax expense $43,150 FICA Taxes payable $39,325 Unemployement taxes payable $3,825 (Being the payroll expense recorded)