E3-13. Employees' Earnings Using Hourly and Piece-Rate Methods LO1 , LO3 The payroll records of Grove Machining Co. show the following information for the week ended April 17: Production (Units) Rate Income Tax W/held $ 80 84 Hours Classification Worked Direct 42 Direct 48 Direct 39 Direct 40 Indirect 40 Indirect 50 Employee Manressa, C. Dorr, M. Ginty, D. Norris, D. Rancifer, K. Greer, B. Holbert, R. 2,000 $18.00/hr $17.60/hr $.44/piece $.44/piece $800/wk $1,600/wk $1,400/wk 110 100 1.800 100 240 Indirect 40 120 Hourly workers are paid time-and-a-half for overtime. a. Determine the net earnings of each employee. b. Prepare the journal entries for the following: 1. Recording the payroll. 2. Paying the payroll. 3. Distributing the payroll. (Assume that the overtime premium will be distributed to all jobs worked on during the period.) 4. Recording the employer's payroll taxes. (Assume that none of the employees has achieved the maximum wage bases for FICA and unemployment taxes.) a. Regular Earnings Overtime Premium Total Earnings FICA 8% Income Tax Withheld Net Earnings Hours Pieces Rate Employee Manressa, C. Dorr, M. Ginty, D. Norris, D. Rancifer, K. Greer, B. Holbert, R. Classifi- cation Direct Direct Direct Direct Indirect Indirect Indirect b. Debit Credit 1. GENERAL JOURNAL Account Title Payroll FICA Tax Payable Employee Income Tax Payable Wages Payable 2. Wages Payable Cash 3. Work in Process Factory Overhead Payroll 4. Factory Overhead FICA Tax Payable Federal Unemployment Tax Payable State Unemployment Tax Payable RATES FUTA SUTA 0.01 0.04