What is the total cost of compensation expense for the first week of January year 1 for Webber packing company? Required information[The following information applies to the questions displayed below.]The following information is available for the employees of Webber Packing Company for the first week of January Year 1:1. Kayla earns $25 per hour and 1½ times her regular rate for hours over 40 per week. Kayla worked 51 hours the firstweek in January. Kayla's federal income tax withholding is equal to 8 percent of her gross pay. Webber pays medicalinsurance of $75 per week for Kayla and contributes $47 per week to a retirement plan for her.2. Paula earns a weekly salary of $1,150. Paula's federal income tax withholding is 16 percent of her gross pay. Webberpays medical insurance of $135 per week for Paula and contributes $95 per week to a retirement plan for her.3. Vacation pay is accrued at the rate of 2 hours per week (based on the regular pay rate) for Kayla and $80 per week forPaula.Assume the Social Security tax rate is 6.0 percent on the first $110,000 of salaries and the Medicare tax rate is 1.5 percentof total salaries. The state unemployment tax rate is 5.4 percent and the federal unemployment tax rate is 0.6 percent ofthe first $7,000 of salary for each. employee.c. Prepare the journal entry to record the payment of the payroll for the week. (If no entry is required for a transaction/event, select"No journal entry required" in the first account field. Do not round intermediate calculations. Round your answers to 2 decimalplaces.)

Compensation expenses include all expenses on employees provided for by the organization.

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Business

Accounting

What is the total cost of compensation expense for the first week of January year 1 for Webber packing company?

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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