CHAPTER 8 - ACCOUNTING FOR LABOR

TRUE/FALSE
1.
True
2.
False
3.
False
4.
False
5.
False

6.
7.
8.
9.
10.

False
True
True
True
True

Problem 1 - Evergreen Company

A) 1. CHARGED TO THE JOB
2. CHARGED TO FACTORY OVERHEAD CONTROL
CHARGED
JOB 401
28,000
18,000
5,600
______
51,600

Direct materials
Direct labor
Factory overhead
Overtime
Total

TO JOB
JOB 402
37,000
23,000
11,200
6,000
77,200

CHARGED TO FOC
Other factory costs
Overtime
Total

P 16,800
6,000
P 22,800

CHARGED
JOB 401
28,000
18,000
7,600
______
53,600

TO FOC
JOB 402
37,000
23,000
15,200
______
75,200

x 1/3
X 2/3

Problem 2
Employe
e
Austria
Bautista
DeSantos
Motus
Reyes
TOTAL
Employe
e
Austria
Bautista
DeSantos
Motus
Reyes

No.
Hr
s
86
88
88
80
80

Rate
36.00
36.00
45.00
30.00
30.00

Regular
Pay

OT
Hours

3,096
3,168
3,960
2,400
2,400
15,024

6
8
8
-

Total
Pay

WTax

SSS

3,204
3,312
4,140
2,400
2,400

91.23
102.03
15.85

109.00
127.20
145.30
90.80
90.80

Rate

Overtime
Premium

18.00
18.00
22.50
-

Pagibi
g
96.12
99.36
100.00
72.00
72.00

108.00
144.00
180.00
-__
432.00
PH
100
100
100
100
100

Total
Pay
3,204
3,312
4,140
2,400
2,400___
15,456

Total
Deductio
ns
396.35
428.59
345.30
262.80
278.65__

Net
Pay
2,807.65
2,883.41
3,794.70
2,137.20
2,121.35

TOTAL 15,456
Withholding tax
Austria

209.11

563.10 439.48

500

3,204
2,500 704 x 10%

Bautista

3.312
2,500
812 x 10%

Reyes

1,711.69

13,744.31

20.83
70.40
91.23
20.83
81.20
102.03

2,400
2,083
317 x 5%

b)
1.

15.85
Payroll
WTax Payable
SSS Prem. Payable
Pag-ibig Contributions Payable
Philhealth Contributions Payable
Accrued payroll

15,456
209.11
563.10
439.48
500.00
13,744.31

2.

Accrued payroll
Cash

13,744.31
13,744.31

3.

Work in process (3,096+3,168+3,960)

FOC (2,400+2,400+432 )
Payroll

10,224
5,232
15,456

Problem 3 - Norman Company

Employe
e
Cruz
Briones
David
Mendoze
Rivera
Tolentino
TOTAL

Guarantee
d
Wage
2,000
2,000
2,000
2,000
2,000
2,000
12,000

Total pay piece rate

(240 x 7.50)
(286 x 7.50)
(275 x 7.50)
(240 x 7.50)
(225 x 7.50)
(285 x 7.50)

1,800
2,145
2,062.50
1,800
1,687.50
2,137.50
11,632.50

2. Charged to Work in process

3. Charged to factory overhead account -

Deficienc
y
200
200
312,50
-___
712.50

11,632.50
712,50

Total
Payroll
2,000.00
2,145.00
2,062.50
2,000.00
2,000.00
2,137.50
12,345.00

Problem 4 - Ty-Nee Trailer Company

Deductions were computed on the assumption that previous payment of wages were made
without deductions and all deductions are made on the last payment for the month.
REG
HRS
.
80
85
88
88
85

Employee
Castro
Ardina
Briones
David
Fajardo
TOTAL

426

Continuation
Employee

Total
Pay

Castro
Ardina
Briones
David
Fajardo

28,800
29,500
28,800
27,300
25,925

TOTAL

140,325

Castro
Total pay

Ardina
Total pay

Briones
Total pay

LAR
RATE

PAY

150.00
160.00
150.00
150.00
150.00

12,000.00
13,600.00
13,200.00
13,200.00
12,750.00

5
8
8
5

64,750.00

26

760.00

OT
HRS.

OT
PAY
RATE

TOTAL
PAY

80.00
75.00
75.00
75.00

12,000.00
14,000.00
13,800.00
13,800.00
13,125.00

400.00
600.00
600.00
375.00

-__
305.00 1,975.00

66,725.00

SSS W/holdin
Prem.
g
Tax
581.30
7,378.89
581.30
6,314.89
581.30
6,757.77
581.30
6,610.89
581.30
6,170.89

Phil.
Pag- Total
Health
ibig
Deduct
350.00
362.50
350.00
337.50
312.50

100.00
100.00
100.00
100.00
100.00

8,410.19
7,358.69
7,789.07
7,629.69
7,164.69

3,589.81
6,641.31
6,010.93
6,170.31
5,960.31

2,906.5
0

1,712.50

500.00

38,352.33

28,372.67

33,233.33

28,800
22,017
6,783 x 32%
29,500
26,042
3,458 x 32%
28,800

- 5,208.33
2,170.56
7,378.89
5.208.33
1,106.56
6,314.89

Net Pay

23,958
4,842 x 32%

David
Total pay

27,300
22,917
4,383 x 32%

Fajardo
Total pay

2.

5,208.33
1,549.44
6,757.77

25.925
22,917
3,008 x 32%

Payroll
W/holding tax payable
SSS Premiums payable
Phil Health Contributions payable
Pag-ibig funds contributions payable
Accrued payroll

5,208.33
1,402.56
6.610.89
5,208.33
962.56
6,170.89
66,725
33,233.33
2,906.50
1,712.50
500.00
28,372.67

Accrued payroll
Cash

28,372.67
28,372.67

Work in process
Factory overhead control (12,000 + 1,975)
Payroll

52,750
13,975

MULTILE CHOICE
1.
b
2.
b
3.
a
4.
b
5.
a

6.
7.
8.
9.
10.

a
d
d
a
c

11.
12.
13.
14.
15.

66,725

b
c
692,500
d
d