CHAPTER 8 Cost Acctg. (De Leon)

Topics: Money, Payment Pages: 12 (617 words) Published: June 18, 2015
CHAPTER 8 - ACCOUNTING FOR LABOR

TRUE/FALSE
1.True6. False
2.False7.True
3.False8.True
4.False9.True
5.False 10.True

Problem 1 - Evergreen Company
A) 1. CHARGED TO THE JOB
2. CHARGED TO FACTORY OVERHEAD CONTROL

CHARGED
TO JOB
CHARGED
TO FOC

JOB 401
JOB 402
JOB 401
JOB 402
Direct materials
28,000
37,000
28,000
37,000
Direct labor
18,000
23,000
18,000
23,000
Factory overhead
5,600
11,200
7,600
15,200
Overtime
______
6,000
______
______
Total
51,600
77,200
53,600
75,200

CHARGED TO FOC
Other factory costsP 16,800
Overtime 6,000
TotalP 22,800 x 1/3
X 2/3

Problem 2
No.

Regular
OT

Overtime
Total
Employee
Hrs
Rate
Pay
Hours
Rate
Premium
Pay
Austria
42
36.00
1,512
2
18.00
36.00
1,548
Bautista
43
36.00
1,548
3
18.00
54.00
1,602
DeSantos
44
45.00
1,980
4
22.50
90.00
2,070
Motus
40
30.00
1,200
-
-
-
-
Reyes
40
30.00
1,200
-
-
-__
-___
TOTAL
7,440

180.00
7,620
b)
1.Payroll7,620
Accrued payroll7,620

2.Accrued payroll7,620
Cash7,620

3.Work in process (1,512 + 1,548 + 1,980)5,040
FOC (1,200 + 1,200 + 180 ) 2,580
Payroll7,620
Page 2

Problem 3 - Norman Company

Employee
Guaranteed
Wage
Total pay – piece rate
Deficiency
Total Payroll
Cruz
2,000
(240 x 7.50) 1,800
200
2,000.00
Briones
2,000
(286 x 7.50) 2,145
-
2,145.00
David
2,000
(275 x 7.50) 2,062.50
-
2,062.50
Mendoze
2,000
(240 x 7.50) 1,800
200
2,000.00
Rivera
2,000
(225 x 7.50) 1,687.50
312,50
2,000.00
Tolentino
2,000
(285 x 7.50) 2,137.50
-___
2,137.50
TOTAL
12,000
11,632.50
712.50
12,345.00

2. Charged to Work in process - 11,632.50 3. Charged to factory overhead account- 712,50

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.

REGU
LAR
PAY
OVER
TIME
PAY
TOTAL
Employee
HRS.
RATE

HRS.
RATE

PAY
Castro
42
40.00
1,680.00
2
20.00
40.00
1,720.00
Ardina
45
50.00
2,250.00
5
25.00
125.00
2,375.00
Briones
48
40.00
1,920.00
8
20.00
160.00
2,080.00
David
48
40.00
1,920.00
8
20.00
160.00
2,080.00
Fajardo
45
40.00
1,800.00
5
20.00
100.00
1,900.00
Tomas
42
40.00
1,680.00
2
20.00
40.00
1,720.00
Villas
40
40.00
1,600.00
-
-
-__
1,600.00
TOTAL

12,850.00

625.00
13,475.00

Continuation
Employee
Total Pay SSS Prem.
W/holding
Tax
Phil. Health
Pag- ibig
Total Deduct
Net Pay
Castro
1,720.00
250.00
681.28
87.50
100.00
1,118.78
601.22
Ardina
2,375.00
333.30
614.53
112.50
100.00
1,160.33
1214.67
Briones
2,080.00
283.30
840.93
100.00
100.00
1,324.23
755.77
David
2,080.00
283.30
865.33
100.00
100.00
1,348.63
731.37
Fajardo
1,900.00
266.70...
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