odified wage plan Marcellus Wallace earns $25 per hour for up to 400 units of production per day. If he produces more than 400 units per day, he will receive an additional piece rate of $0.50 per unit. Assume that his hours worked and pieces finished for the week just ended were as follows: a. Determine Wallace’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. Oh no! Our expert couldn't answer your question.Don't worry! We won't leave you hanging. Plus, we're giving you back one question for the inconvenience.Here's what the expert had to say:Hi and thanks for your question! Unfortunately it looks incomplete. Please resubmit the question with pieces finished and hours worked information. We've credited a question back to your account. Apologies for the inconvenience.Ask Your Question Again8 of 10 questions leftuntil 4/18/21QuestionModified wage plan Marcellus Wallace earns $25 per hour for up to 400 units of production per day. If he produces more than 400 units per day, he will receive an additional piece rate of $0.50 per unit. Assume that his hours worked and pieces finished for the week just ended were as follows:a. Determine Wallace’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. Principles of Cost Accountingthat his hours worked and pieces finished for the week junended were as follows:b. CompumethoPieces Finishedmilar toand Review 1Journal eA partialweek ofDayHours WorkedE3-6400Monday380Tuesday440Wednesday450Gross earThursday360DeductionFridaya. Determine Wetzel's earnings for each day and for the week.b. Prepare the journal entry to distribute the payroll, assuming thatany make-up guarantees are charged to Factory Overhead.FICA taIncomHealthTax-sModified wage planPeggy Nolan earns $20 per hour for up to 300 units of productionper day. If she produces more than 300 units per day, she willreceive an additional piece rate of $.5333 per unit. Assume thather hours worked and pieces finished for the week just endedE3-4Total dNet eaa. State unemployment-4% of the firstcalendar year.Federal unemployment-1% of the first $8,000 of earnings per employee percalendar year.Federal income tax withholding-10% of each employee's gross earnings,unless otherwise stated.Computing payroll earningsR. Herbert of Crestview Manufacturing Co. is paid at the rate of $20an hour for an eight-hour day, with time-and-a-half for overtimeand double-time for Sundays and holidays. Regular employmentis on the basis of 40 hours a week, five days a week. At the endof a week, the labor time record shows the following:E3-1Job or Indirect LaborSu.M.Tu.Th.Sa.Total0075.35.024.0009335.6.522.5Machine repair46.510.5Total48.8811.5116.557.0Because jobs are randomly scheduled for the overtime period,any overtime premium is charged to Factory Overhead.a. Compute Herbert's total earnings for the week.b. Present the journal entry to distribute Herbert's total earnings.(Note: These single journal entries here and in E3-2, E3-3, E3-4, E3-8and E3-9 are for the purpose of illustrating the principle involved.Normally, the entries would be made for the total factory payrollplus the administrative and sales payroll.)Recording payrollUsing the earnings data developed in E3-1 and assuming that thiswas the first week of employment for R. Herbert with CrestviewManufacturing Co., prepare the journal entries for the following:a. The week's payroll.b. Payment of the payroll.E3-2Modified wage planRandy Wetzel earns $25 per hour for up to 400 units of produc-tion per day. If he produces more than 400 units per day, hewill receive an additional piece rate of $.50 per unit. AssumeE3-3

Benefits in kinds or cash payable to workers is known as Labor cost . Overheads is indirect cost…

odified wage plan Marcellus Wallace earns $25 per hour for up to 400 units of production per day. If he produces more than 400 units per day, he will receive an additional piece rate of $0.50 per unit. Assume that his hours worked and pieces finished for the week just ended were as follows: a. Determine Wallace’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. Oh no! Our expert couldn't answer your question. Don't worry! We won't leave you hanging. Plus, we're giving you back one question for the inconvenience. Here's what the expert had to say: Hi and thanks for your question! Unfortunately it looks incomplete. Please resubmit the question with pieces finished and hours worked information. We've credited a question back to your account. Apologies for the inconvenience. Ask Your Question Again 8 of 10 questions left until 4/18/21 Question Modified wage plan Marcellus Wallace earns $25 per hour for up to 400 units of production per day. If he produces more than 400 units per day, he will receive an additional piece rate of $0.50 per unit. Assume that his hours worked and pieces finished for the week just ended were as follows: a. Determine Wallace’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

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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odified wage plan Marcellus Wallace earns $25 per hour for up to 400 units of production per day. If he produces more than 400 units per day, he will receive an additional piece rate of $0.50 per unit. Assume that his hours worked and pieces finished for the week just ended were as follows: a. Determine Wallace’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.

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Question

Modified wage plan

Marcellus Wallace earns $25 per hour for up to 400 units of production per day. If he produces more than 400 units per day, he will receive an additional piece rate of $0.50 per unit. Assume that his hours worked and pieces finished for the week just ended were as follows:

a. Determine Wallace’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.

Principles of Cost Accounting
that his hours worked and pieces finished for the week jun
ended were as follows:
b. Compu
metho
Pieces Finished
milar to
and Review 1
Journal e
A partial
week of
Day
Hours Worked
E3-6
400
Monday
380
Tuesday
440
Wednesday
450
Gross ear
Thursday
360
Deduction
Friday
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.
FICA ta
Incom
Health
Tax-s
Modified wage plan
Peggy Nolan earns $20 per hour for up to 300 units of production
per day. If she produces more than 300 units per day, she will
receive an additional piece rate of $.5333 per unit. Assume that
her hours worked and pieces finished for the week just ended
E3-4
Total d
Net ea
a.

State unemployment-4% of the first
calendar year.
Federal unemployment-1% of the first $8,000 of earnings per employee per
calendar year.
Federal income tax withholding-10% of each employee's gross earnings,
unless otherwise stated.
Computing payroll earnings
R. Herbert of Crestview Manufacturing Co. is paid at the rate of $20
an hour for an eight-hour day, with time-and-a-half for overtime
and double-time for Sundays and holidays. Regular employment
is on the basis of 40 hours a week, five days a week. At the end
of a week, the labor time record shows the following:
E3-1
Job or Indirect Labor
Su.
M.
Tu.
Th.
Sa.
Total
007
5.
3
5.0
24.0
009
3
3
5.
6.5
22.5
Machine repair
4
6.5
10.5
Total
4
8.
8
8
11.5
11
6.5
57.0
Because jobs are randomly scheduled for the overtime period,
any overtime premium is charged to Factory Overhead.
a. Compute Herbert's total earnings for the week.
b. Present the journal entry to distribute Herbert's total earnings.
(Note: These single journal entries here and in E3-2, E3-3, E3-4, E3-8
and E3-9 are for the purpose of illustrating the principle involved.
Normally, the entries would be made for the total factory payroll
plus the administrative and sales payroll.)
Recording payroll
Using the earnings data developed in E3-1 and assuming that this
was the first week of employment for R. Herbert with Crestview
Manufacturing Co., prepare the journal entries for the following:
a. The week's payroll.
b. Payment of the payroll.
E3-2
Modified wage plan
Randy Wetzel earns $25 per hour for up to 400 units of produc-
tion per day. If he produces more than 400 units per day, he
will receive an additional piece rate of $.50 per unit. Assume
E3-3

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