M10-3 Calculating Net Pay and Total Payroll Costs [LO 10-2 Lightning Electronics is a midsize manufacturer of lithium batteries. The company's payroll records for the November 1-14 pay period show that employees earned wages totaling $50,000 but that employee income taxes totaling $7,000 and FICA taxes totaling $2,625 were withheld from this amount. The net pay was directly deposited into the employees' bank accounts. Required: 1. What was the amount of net pay? 2. Assuming Lightning Electronics also must pay $250 of unemployment taxes for this pay period, what amount would be reported as the total payroll costs? 40,375 1. Net Pay 2. Total Payroll Costs