The wages payable related to factory workers for Larkin Company during the month of January are $73,000. The employer's payroll taxes for the factory payroll are $9,200. The fringe be to be paid by the employer on this payroll are $6,200. Of the total accumulated cost of factory labor, 83% is related to direct labor and 17% is attributable to indirect labor. (a) (b) Prepare the entry to record the factory labor costs for the month of January. Prepare the entry to assign factory labor to production. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation (a) Debit Credit

The wages payable related to factory workers for Larkin Company during the month of January are $73,000. The employer's payroll taxes for the factory payroll are $9,200. The fringe be to be paid by the employer on this payroll are $6,200. Of the total accumulated cost of factory labor, 83% is related to direct labor and 17% is attributable to indirect labor. (a) (b) Prepare the entry to record the factory labor costs for the month of January. Prepare the entry to assign factory labor to production. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation (a) Debit Credit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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During the month, Job #2 used specialized machinery for 350 hours and incurred $700 in utilities on account, $400 in factory depreciation expense, and $200 in property tax on the factory. Prepare journal entries for the following: Record the expenses incurred. Record the allocation of overhead at the predetermined rate of $1.50 per machine hour.
1. Purchased $75,180 in materials on account. Check my work 2. Issued $2,100 in supplies from the materials inventory to the production department. 3. Paid for the materials purchased in transaction (1) 4. Issued $35,700 in direct materials to the production department. 5. Incurred wage costs of $58,800, which were debited to Payroll, a temporary account. Of this amount, $18,900 was withheld for payroll taxes and credited to Payroll Taxes Payable. The remaining $39,900 was paid in cash to the employees. See transactions (6) and (7) for additional information about Payroll. 5. Recognized $29,400 in fringe benefit costs, incurred as a result of the wages paid in (5). This $29,400 was debited to Payroll and credited to Fringe Benefits Payable 7. Analyzed the Payroll account and determined that 60 percent represented direct labor; 30 percent, indirect manufacturing labor, and 10 percent, administrative and marketing costs. 8. Paid for utilities, power, equipment maintenance, and other…
Use the information given below to calculate the labour cost to Yolo Enterprises in respect of T. Henry for the week ended 27 March 2021. 1.2 INFORMATION Yolo Enterprises submitted the following information for the week ended 27 March 2021 in respect of an employee, T. Henry, who is employed at one of its projects: Hours worked Sunday Monday to Friday Saturday 47 5 Additional information : The normal working week is Monday to Friday and comprises 45 hours. : The normal wage rate is R180 per hour. : Overtime during the normal working week and on Saturdays is remunerated at time-and-a-half of the normal rate. : Overtime on Sundays is remunerated at twice the normal rate. : The following deductions are applicable to T. Henry: Income tax 20% of taxable income Pension 8% of normal pay Medical R400 per week aid | Yolo Enterprises contributes on a Rand-for-Rand basis to the pension fund and medical aid fund.
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A review of the accounting records of Benson Manufacturing indicated that the company incurred the following payroll costs during the month of March. Assume the company's financial statements are prepared in accordance with GAAP. 1. Salary of the company president-$31,400. 2. Salary of the vice president of manufacturing—$15,100. 3. Salary of the chief financial officer-$17,900. 4. Salary of the vice president of marketing-$14,800. 5. Salaries of middle managers (department heads, production supervisors) in manufacturing plant—$186,000. 6. Wages of production workers-$933,000. 7. Salaries of administrative personnel-$106,000. 8. Salaries of engineers and other personnel responsible for maintaining production equipment-$171,000. 9. Commissions paid to sales staff-$261,000. Required a. What amount of payroll cost would be classified as SG&A (selling, general, and administrative) expense? b. Assuming that Benson made 3,100 units of product and sold 2,170 of them during the month of March,…
Provide the journal entry of each transactions.
In addition to wages, direct manufacturing labor-related costs include pension contributions of $0.40 per hour, worker’s compensation insurance of $0.10 per hour, employee medical insurance of $0.50 per hour, and Social Security taxes. Assume that as of January 1, 2018, the Social Security tax rates are 7.5% for employers and 7.5% for employees. The cost of employee benefits paid by DeWitt on its direct manufacturing employees is treated as a direct manufacturing labor cost. DeWitt has a labor contract that calls for a wage increase to $12 per hour on April 1, 2018. New laborsaving machinery has been installed and will be fully operational by March 1, 2018. DeWitt expects to have 16,000 frames on hand at December 31, 2017, and it has a policy of carrying an end-of-month inventory of 100% of the following month’s sales plus 50% of the second following month’s sales. Q1. Prepare a production budget and a direct manufacturing labor cost budget for DeWitt Company by month and for the first…
A review of the accounting records of Finch Manufacturing indicated that the company incurred the following payroll costs during the month of March. Assume the company's financial statements are prepared in accordance with GAAP. 1. Salary of the company president—$32,300.2. Salary of the vice president of manufacturing—$16,700.3. Salary of the chief financial officer—$19,000.4. Salary of the vice president of marketing—$14,900.5. Salaries of middle managers (department heads, production supervisors) in manufacturing plant—$189,000.6. Wages of production workers—$929,000.7. Salaries of administrative secretaries—$105,000.8. Salaries of engineers and other personnel responsible for maintaining production equipment—$183,000.9. Commissions paid to sales staff—$243,000. Requireda. What amount of payroll cost would be classified as SG&A expense?b. Assuming that Finch made 3,400 units of product and sold 3,060 of them during the month of March, determine the amount of payroll cost…
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Edwin Parts, a job shop, recorded the following transactions in May: Purchased $87,200 in materials on account. Issued $3,650 in supplies from the materials inventory to the production department. Issued $43,600 in direct materials to the production department. Paid for the materials purchased in transaction (1). Incurred wage costs of $67,200, which were debited to Payroll, a temporary account. Of this amount, $22,300 was withheld for payroll taxes and credited to Payroll Taxes Payable. The remaining $44,900 was paid in cash to the employees. See transactions (6) and (7) for additional information about Payroll. Recognized $34,700 in fringe benefit costs, incurred as a result of the wages paid in (5). This $34,700 was debited to Payroll and credited to Fringe Benefits Payable. Analyzed the Payroll account and determined that 65 percent represented direct labor; 15 percent, indirect manufacturing labor; and 20 percent, administrative and marketing costs. Applied overhead on the basis…
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