Employee’s pay: The gross pay is the total earning of a period that an employee has earned. The hourly rate of pay is multiplied by the number of hours the employee has worked to determine the gross pay. Out of this gross pay, several withholdings are done with respect to various purposes like for Income tax, social security taxes, medicare taxes, etc. The gross pay net of the withholdings determines the take home pay of the employee. To determine: Net pay of Lily Carter Given: G r o s s S a l a r y = $ 12100 I n c o m e T a x w i t h h o l d i n g @ 10 % = 12100 * 10 % = $ 1210 M o n t h l y c o n t r i b u t i o n t o U n i t e d W a y = 12100 * 5 % = $ 605 H e a l t h I n s u r a n c e P r e m i u m = $ 250 S o c i a l S e c u r i t y t a x e s @ 6.2 % = $ 750.20 M e d i c a r e T a x e s @ 1.45 % = $ 175.45

Question

Below is information for Blue Company. Using this information, answer the following questions on the "Calculation" tab in the file. Show your work (how you got your answer) and format appropriately. Blue company has prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 to 1,500 units): Sales $ 40,000 Variable expenses 24,000 Contribution margin 16,000 NOTE: Use the amounts in the original fact pattern to the left as your basis for the questions below. Fixed expenses 12,000 Net operating income $ 4,000 Questions: 1. What is the contribution margin per unit? 2. What is the contribution margin ratio? 3. What is…

Answer 1

Question

Chapter 11, Problem S11.7SE

To determine

Employee’s pay: The gross pay is the total earning of a period that an employee has earned. The hourly rate of pay is multiplied by the number of hours the employee has worked to determine the gross pay. Out of this gross pay, several withholdings are done with respect to various purposes like for Income tax, social security taxes, medicare taxes, etc. The gross pay net of the withholdings determines the take home pay of the employee.

To determine:

Net pay of Lily Carter

Given:

$G r o s s S a l a r y = $ 12100$

$I n c o m e T a x w i t h h o l d i n g @ 10 % = 12100 * 10 % = $ 1210$

$M o n t h l y c o n t r i b u t i o n t o U n i t e d W a y = 12100 * 5 % = $ 605$

$H e a l t h I n s u r a n c e P r e m i u m = $ 250$

$S o c i a l S e c u r i t y t a x e s @ 6.2 % = $ 750.20$

$M e d i c a r e T a x e s @ 1.45 % = $ 175.45$

To determine

Journal Entry to record wages expense and payment.

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Below is information for Blue Company. Using this information, answer the following questions on the "Calculation" tab in the file. Show your work (how you got your answer) and format appropriately. Blue company has prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 to 1,500 units): Sales $ 40,000 Variable expenses 24,000 Contribution margin 16,000 NOTE: Use the amounts in the original fact pattern to the left as your basis for the questions below. Fixed expenses 12,000 Net operating income $ 4,000 Questions: 1. What is the contribution margin per unit? 2. What is the contribution margin ratio? 3. What is…

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