Payroll Accounting

Homework

Payroll Accounting

1. The following payroll summary is prepared for the JJ Company for the week ending March 29, 2013:

Direct labor:

Job No. 200 P10,300

Job No. 201 7,000

Job No. 202 6,500

Total direct labor P23,800

Indirect labor 6,200

Total gross payroll P30,000

Payroll taxes and insurance are to be computed as follows:

Employee's

Share Employer's

Share

Income tax withheld P4,300

Pension Fund 2.0%

Pag-ibig Contribution 2.0% 2.0%

PhilHealth 1.25% 1.25%

SSS Contribution 2.5% 3.25%

Employee's compensation insurance 1.0%

Prepare the general journal entries to:

a. Record the payroll.

b. Pay the payroll.

c. Distribute the payroll to the appropriate accounts.

d. Record the employer's share of payroll expense. (All of the employees work in the factory.)

2. Jay Samson is paid P100 an hour for 40 hours a week, with time-and-a-half for overtime and double-time for Sundays and holidays. Overtime premium is charged to Factory Overhead.

Using the labor-time record below:

a. Compute Jay’s total earnings for the week.

b. Present the journal entry to distribute Jay’s total earnings.

Employee’s deductions:

Withholding -Tax 10%; SSS – 2%; Pag-ibig- 1%; Philheal-1%

Sun Mon Tues Wed Thur Fri Sat Total

Job-F28 4 4 4 4 4 4 4 28

Job-M14 3 2 4 6 15

Admin 1 2 4 7

Total 4 8 8 8 8 10 4 50

3. Bel Gran earns P15 per hour for up to 300 units of production per eight-hour day. If she produces more than 300 pieces per day, she will receive an additional piece rate of P0.40 per unit.

A summary of her work week follows:

Hours Worked Pieces Finished

Monday 8 350

Tuesday 8 280

Wednesday 8 320

Thursday 8 290

Friday 8 300

(a) Determine Gran’s earnings for each day and for the week.

(b) Prepare the journal entry to distribute the payroll.

4. Tracy Company’s Schedule of Earnings and Payroll taxes for the period ended March 28 - 31 to be paid April...