Martin Printing pays employees on a weekly basis on Friday for the week ended the previous Friday. Employees’ compensation is earned evenly each day over a 5-day work week. This year, March 31 fell on Tuesday. Payroll costs for the week ended April 3 follow:
Non Factory: Sales $ 28,200 Administrative 34,500 $ 62,700 Factory: Direct labor $ 77,200 Overtime premium 5,300 Indirect labor 45,700 $128,400 $191,100 Excluding payroll taxes, what amount should be accrued to the payroll account for the period ended April 30? a. $51,360 b. $191,100 c. $114,660 d. $76,440
Calculation of amount accrued to payroll account for period ended April 30 is shown below | ||||||
In this case therefore 2 days payroll would be accrued that is of Monday and Tuesday which would be paid in May | ||||||
Total amount | Payroll per day | No of days accrued | Payroll accrued | |||
Sales | $28,200 | $5,640 | 2 | $11,280 | ||
Administrative | $34,500 | $6,900 | 2 | $13,800 | ||
Direct labor | $77,200 | $15,440 | 2 | $30,880 | ||
Overtime premium | $5,300 | $1,060 | 2 | $2,120 | ||
Indirect labor | $45,900 | $9,180 | 2 | $18,360 | ||
Payroll accrued | $191,100 | $38,220 | $76,440 | |||
Thus, the total payroll accrued is $76,440 | ||||||
Martin Printing pays employees on a weekly basis on Friday for the week ended the previous...
28. Western Industries pays employees on a weekly basis on Tuesday for the week ended the previous Friday. Employee's compensation is earned evenly each day over a 5-day work week. This year, April 30 fell on Thursday. Payroll costs for the week ended May follow: Non factory Sales $5,000 Administrative 10.000 Factory Direct Labor $25,000 Overtime premium 2,500 Indirect Labor 15,000 Excluding payroll taxes, how much of the accrued payroll on April 30 should be charged to Factory Overhead? a....