sol Assign. 6 & 7

sol Assign. 6 & 7 - E3-1a.$810Regular:Work in...

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Unformatted text preview: E3-1a.$810Regular:Work in Process$697.5057 hours $15.00 (regular rate) =$855.00Factory Overhead(Maintenance and Repair)$157.50Overtime premium:13 hours $ 7.50(half of regular rate)= $97.50Factory Overhead4 hours $15 (equal to regular rate)= $60.00157.50(Overtime Premium)$1,012.50b.Work in Process........................................................697.50Factory Overhead (Overtime Premium)....................157.50Factory Overhead (Maintenance and Repair)...........157.50Payroll.................................................................1,012.50Note:The single journal entry for one employee is required here only for the purpose of illustrating the principle in-volved. Normally the entry would be for the total factory payroll for the period.Calculation for distribution of labor costs (not required in students solution):HoursRate=Total Account DebitedFactory OverheadExpenseDouble-Time-and-Double-GrossWork inOvertimeRegularTimeRegulara-HalfTimeEarningsProcessPremiumM & RSunday (indirect)Monday (direct)84$15.00$30.00$ 120.00 120.00$120.00$60.00$60.00Tuesday (direct)815.00120.00120.00Wednesday (direct)815.00120.00120.00Thursday (direct)815.00$22.50198.75172.5026.252Chapter 3Friday (direct)815.0022.50187.50165.0022.50Saturday (indirect)22.50146.2548.7597.50404$1,012.50$ 697.50$ 157.50$ 157.50Chapter 33EXERCISESE3-2 a.Payroll1,012.50FICA Tax Payable (8.0% of $1,012.50)81.00Employees Income Tax Payable (10.0% of $1,012.50)101.25Wages Payable830.25b.Wages Payable830.25Cash830.25E3-3a.HoursPiecesEarnings @ Earnings @ Make-UpPayrollDayWorkedFinished $20/hr. $.40/piece Guarantee EarningsMonday8400$160$160$160Tuesday8380160152$8160Wednesday8440160176176Thursday8450160180180Friday836016014416160Total40$800$812$24$836b.Work in Process..............................812Factory Overhead............................24Payroll........................................836Chapter 34E3-4a.The overtime premium could be charged to Job 402 or charged to Factory Overhead and allocated between Jobs 401 and 402. If the contract provisions for Job 402 indicate the necessity for overtime in order to complete the job in accordance with the customers specifications, or if the overtime is due to an emergency demand by the customer, the overtime premium should be charged directly to Job 402. If the overtime is not directly attributable to contract provisions or other factors identified with Job 402, the overtime premium should be charged to Factory Overhead.b.Costs of Jobs 401 and 402:Overtime PremiumOvertime PremiumCharged toCharged toJob 402Factory OverheadJob 401Job 402Job 401Job 402Direct materials..................................$28,000$ 37,000$28,000............................................................$37,000Direct labor.........................................18,00029,000*18,000............................................................23,000Factory overhead...............................5,60011,2007,600................................................................
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This note was uploaded on 10/16/2011 for the course ACCT ACTN taught by Professor Vanderbeck during the Spring '11 term at Abu Dhabi University.

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sol Assign. 6 & 7 - E3-1a.$810Regular:Work in...

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