Green Day Hardware Company€™s payroll for November 2008 is summarized below.

At this point in the year some employees have already received wages in excess of those to which payroll taxes apply. Assume that the state unemployment tax is 2.5%. The FICA rate is 7.65% on an employee€™s wages to $97,500 and 1.45% in excess of $97,500. Of the $188,000 wages subject to FICA tax, $20,000 is in excess of $97,500 related to the sales wages. Federal unemployment tax rate is 0.8% after credits. Income tax withheld amounts to $16,000 for factory, $7,000 for sales, and $6,000 for administrative.
Instructions
(a) Prepare a schedule showing the employer€™s total cost of wages for November by function. (Round all computations to nearest dollar.)
(b) Prepare the journal entries to record the factory, sales, and administrative payrolls including the employer€™s payrolltaxes.

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Amount Subject to Payroll Taxes Unemployment Ta Payroll Factory Sales Administrative Wages Due $120,000 44,000 36,000 $200,000 FICA Federal State $120,000 32,000 36,000 $188,000 40,000 4,000 $40,000 4,000 Total $44,000 $44,000