
PRINCIPLES OF COST ACCOUNTING
17th Edition
ISBN: 9781305280151
Author: Vanderbeck
Publisher: CENGAGE L
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Chapter 3, Problem 18Q
To determine
Explain the situation that an accrual for payroll earnings and payroll tax expense should be made.
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PROBLEM A
Sabio, as her original investment in the firm of Sabio and Mariano, contributed equipment that had been
recorded in the books of her own business as costing P900,000, with accumulated depreciation of
P620,000. The partners agreed on a valuation of P400,000. They also agreed to accept Sabio's accounts
receivable of P360,000, realizable or collectible to the extent of 85%.
Required:
1. Prepare the journal entry:
a. To adjust Sabio's assets
b. To close Sabio's books
c. To record Sabio's investment to the partnership
PROBLEM B
On March 1, 2025, Gogola and Paglinawan formed a partnership. Gogola contributed cash of P1,260,000
and computer equipment that cost P540,000. The fair value of the computer is P360,000. Gogola has notes
payable on the computer of P120,000 to be assumed by the partnership. Gogola is to have 60% capital
interest in the partnership. Paglinawan contributed cash amounting to P900,000. The partners agreed to
share profit and loss equally.
Required:
1. Prepare…
York Manufacturing uses a standard cost system.
•
•
Standard direct labor requirement: 1.8 direct
labor hours per unit
Standard labor rate: $12 per hour
Actual production: 15,000 units during the year
Direct labor costs incurred: $322,200 for 28,600
hours
Compute the Direct Labor Efficiency Variance.
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Chapter 3 Solutions
PRINCIPLES OF COST ACCOUNTING
Ch. 3 - What is the difference between direct and indirect...Ch. 3 - Prob. 2QCh. 3 - Prob. 3QCh. 3 - In production work teams, output is dependent upon...Ch. 3 - Define productivity.Ch. 3 - Prob. 6QCh. 3 - Prob. 7QCh. 3 - Prob. 8QCh. 3 - Prob. 9QCh. 3 - What are the sources for posting direct labor cost...
Ch. 3 - What are the sources for posting indirect labor...Ch. 3 - In accounting for labor costs, what is the...Ch. 3 - Prob. 13QCh. 3 - Prob. 14QCh. 3 - Besides FICA, FUTA and state unemployment taxes,...Ch. 3 - Prob. 16QCh. 3 - Prob. 17QCh. 3 - Prob. 18QCh. 3 - What is a shift premium, and how is it usually...Ch. 3 - Prob. 20QCh. 3 - Prob. 21QCh. 3 - Prob. 22QCh. 3 - Prob. 23QCh. 3 - Prob. 24QCh. 3 - Prob. 25QCh. 3 - R. Herbert of Crestview Manufacturing Co. is paid...Ch. 3 - Recording payroll Using the earnings data...Ch. 3 - Prob. 3ECh. 3 - Peggy Nolan earns 20 per hour for up to 300 units...Ch. 3 - Overtime Allocation Arlin Fabrication Company...Ch. 3 - Prob. 6ECh. 3 - Davis, Inc. paid wages to its employees during the...Ch. 3 - Recording the payroll and payroll taxes Using the...Ch. 3 - Prob. 9ECh. 3 - The total wages and salaries earned by all...Ch. 3 - The total wages and salaries earned by all...Ch. 3 - A weekly payroll summary made from labor time...Ch. 3 - Prob. 13ECh. 3 - Accounting for bonus and vacation pay Cathy Muench...Ch. 3 - Prob. 15ECh. 3 - Prob. 16ECh. 3 - Payroll computation with incentive bonus Fifteen...Ch. 3 - Prob. 2PCh. 3 - Prob. 3PCh. 3 - Payroll for piece-rate wage system Collier...Ch. 3 - A rush order was accepted by Bartley's Conversions...Ch. 3 - The following form is used by Matsuto...Ch. 3 - Payment and distribution of payroll The general...Ch. 3 - Prob. 8PCh. 3 - An analysis of the payroll for the month of...Ch. 3 - Prob. 10PCh. 3 - Prob. 11PCh. 3 - Prob. 12PCh. 3 - Prob. 13PCh. 3 - Using the information in P3-13, prepare the...Ch. 3 - Pan-Am Manufacturing Co. prepares cost estimates...Ch. 3 - Incentive wage plan David Kelley is considering...Ch. 3 - Huron Manufacturing Co. uses a job order cost...
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