Payroll costs after mandatory deductions amount to Php 68,000 for the month. Deductions included Php 9,500 for withholding taxes, Php 4,200 for SSS Premiums, Php 3,400 for Philhealth Premiums, Php 2,900 for PAG-IBIG Premiums. 6. Of the total payroll, Php 62,000 was for direct factory labor, while the rest if for factory supervisors' salaries.

The employer's share for the mandatory deductions is as follows: Php 8,400 for SSS Premiums, Php 3,400 for Philhealth Premiums, and Php 2,900 for PAG-IBIG Premiums.

Question: What should be the journal entry/entries for these inputs? In the second statement, will the employer's salary be included in accounting costs?

Answer rating: 100% (QA)

The journal entry for the payroll costs and mandatory deductions would be Debit Direct factory labor ... View the full answer