Quarterly Bonus Allotment. Thomas Inc., manufacturers of standard pipe fittings for water and sewage lines, pays a bonus to employees based on production recorded each calendar quarter. Normal production is set at 240,000 units per quarter. A bonus of $.50 per unit is paid for any units in excess of the normal out¬ put for each quarter. Distribution of the bonus is made on the following point basis: LO3 Points Allowed for Employees Participating Each Employee 1 works manager. 250 2 production engineers. , 200 5 shop supervisors. 200 1 storekeeper. 100 5 factory office clerks. 10 150 factoryworkers. 20 The employees’ earnings are not penalized for any month in which the actual output falls below the monthly average of the normal quarterly production. When the output does fall below the monthly average, the deficiency is deducted from any excess in subsequent months before any bonus is earned by and paid to the employees.

At the end of March, cumulative actual production amounted to 270,000 units for the quarter.

Required:

(1) Calculate the amount of bonus payable to each group of employees. (Carry all calculations to three deci¬ mal places.)

(2) Prepare journal entries at the end of each month to record the bonus liability on the basis of the follow¬ ing production figures: January, 75,000 units; February, 94,000 units; March, 101,000 units. Assume that all of the bonus is charged to Factory Overhead Control.