Summary of payroll procedures LO_2,3 An analysis of the payroll for the month of November of Starlet Manufacturing Company reveals the information shown:

Barkin, Hunter, and Russo are production workers, and Streep is the plant manager. Weaver 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: Barkin, $12,000;
Hunter, $7,800; Russo, $ I 1 ,500; Streep, $69,400; and Weaver, $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:

Gross Earnings-Week Ending Employee Name 11/8 11/15 11/22 11/29 E. Barkin... $ 300 $ 280 $ 290 $ 320 H. Hunter. R. Russo. 280 270 260 280 320 300 340 280 M. Streep. 1,577 1,577 1,577 1.577 S. Weaver 800 760 850 870 *All regular time