Problem A -
Becky Gonzalez earns $ .50 for every unit she makes up to 240 units. She makes an additional $.10 on every unit she makes over 200. The union contract guarantees her a minimum of $12 per hour. During one week, her hours and productivity were as follows:
|
Day
|
Hours Worked
|
Units completed
|
|
Monday
|
8
|
210
|
|
Tuesday
|
8
|
185
|
|
Wednesday
|
8
|
225
|
|
Thursday
|
8
|
235
|
|
Friday
|
8
|
175
|
1. What was Becky's gross compensation for the week?
2. Assuming no idle time (all hours were productive), prepare the journal entry to record the salary payable to Becky for the week. HINT: Don't forget to consider the amount of any make-up guarantee.
Problem C -
Prepare a journal entry to record the following for September:
|
Direct labor (factory)
|
$ 60,000
|
|
Indirect labor (factory)
|
12,000
|
|
Sales commission
|
3,500
|
|
Sales & Administrative Salaries
|
45,000
|
|
Medical insurance premiums
|
1,500
|
The company considers all employer payroll taxes for factory workers to be a product costs.
Medical insurance is paid 100% by the employer.
The company makes a 2% contribution (on all compensation) to an employee 401(k) plan.
For this problem, assume the following tax rates:
|
Federal income tax
|
15.0%
|
|
|
FICA
|
8.0%
|
8%
|
|
SUTA
|
3.5%
|
|
Ignore any other payroll taxes; Assume all employees are under any tax thresholds.
Attachment:- Assignment File.rar