Question
G. Smith of Central Manufacturing Company is paid at the rate of $30 an hour for an eight hour day, with time and a half
G. Smith of Central Manufacturing Company is paid at the rate of $30 an hour for an eight hour day, with time and a half for overtime and double time for Sundays and holidays. Regular employment is on the basis of 40 hours a week, five days a week. At the end of the week, the labor time record shows the following:
| Job or Indirect Labor | Su | M | Tu | W | Th | F | Sa | Total |
| 007 | 6 | 3 | 2 | 7 | 7 | 25 | ||
| 009 | 2 | 5 | 6 | 3 | 6 | 22 | ||
| Machine Repair | 5 | 8 | 13 | |||||
| Total | 5 | 8 | 8 | 8 | 10 | 13 | 8 | 60 |
Using the data above and the ledger below, compute Smith's total earnings for the week and a prepare the journal entry to distribute Smith's total earnings.
| Account Debited | ||||||||||||
| Factory Overhead | ||||||||||||
| Expense | ||||||||||||
| Regular | Time and | Double | Regular | Time and | Double | Gross | Work In | Overtime | M & R | |||
| a half | Time | a half | Time | Earnings | Process | Premium | ||||||
| Sunday indirect | ||||||||||||
| Monday direct | ||||||||||||
| Tuesday direct | ||||||||||||
| Wednesday direct | ||||||||||||
| Thursday direct | ||||||||||||
| Friday direct | ||||||||||||
| Saturday indirect | ||||||||||||
| Totals | ||||||||||||
| Journal Entry | ||||||||||||
| Factory Overhead | ||||||||||||
| Work In Process | ||||||||||||
| Payroll | 0 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Transfer Pricing Audits In China
Authors: J. Li, A. Paisey
2007th Edition
0230001963, 978-0230001961
