An analysis of the payroll for the month of November for CinMar Inc. reveals the information shown:

Andrews, Lomax, and Herzog are production workers, and Dimmick is the plant manager. Hendrick is in charge of the office. Cumulative earnings paid (before deductions) in this calendar year prior to the payroll period ending November 8 were as follows: Andrews, $21,200; Lomax, $6,800; Herzog, $11,500; Dimmick, $116,200; and Hendrick, $32,800.

Required:

The solution to this problem requires the following forms, using the indicated column headings:

1. Prepare an employee earnings record for each of the five employees.

2. Prepare a payroll record for each of the four weeks.

3. Prepare a labor cost summary for the month.

4. Prepare journal entries to record the following:

a. The payroll for each of the four weeks.

b. The payment of wages for each of the four payrolls.

c. The distribution of the monthly labor costs per the labor cost summary.

d. The company’s payroll taxes covering the four payroll periods.

Transcribed Image Text:

Employee Earnings Record Week Ending Weekly Gross Earnings Payroll Record Employee's Name Gross Earnings Labor Cost Summary Week Ending Dr. Work in Process (Direct Labor) Accumulated Gross Withholdings (2 columns): Dr. Factory Overhead Earnings Indirect Labor) FICA Tax Income Tax (10%) Weekly Earnings Subject Net Amount Paid Dr. Administrative Salaries (Office) Cr. Payroll (Total) to FICA Withholding (2 columns) FICA Tax Income Tax (10%) Net Amount Paid