Megerle Custom Cabinet Co. uses the job order cost system. In recording payroll transactions, the following accounts are used: osts Cash Wages Payable FICA Tax Payable Federal Unemployment Tax Payable State Unemployment Tax Payable Employees Income Tax Payable Payroll Administrative Salaries Miscellaneous Administrative Expense Sales Salaries Miscellaneous Selling Expense Factory Overhead Work in Process lems Factory employees are paid weekly, while all other employees are paid semimonthly on the fifteenth and the last day of each month. All salaries and wages are subject to all taxes. The income tax withheld amounts to 10% of gross wages. 175 Following is a narrative of transactions completed during January: Jan.7 7 14 14 15 =ry 15 21 Recorded total earnings of factory employees amounting to $68,200, less deductions for employees' income taxes and FICA taxes. Issued check for payment of the payroll. Recorded total earnings of factory employees amounting to $66,300, less deductions for employees' income taxes and FICA taxes Issued check for payment of the payroll. Recorded administrative salaries, $10,000, and sales salaries. $18,000, less deductions for employees' income taxes and FICA taxes Issued check for payment of the salaries. Recorded total earnings of factory employees amounting to $72,500, less deductions for employees' income taxes and FICA taxes, Issued check for payment of the payroll Recorded total earnings of factory employees amounting to $74,200, less deductions for employees' income taxes and FICA taxes. Issued check for payment of the payroll. Recorded administrative salaries, $10,000, and sales salaries, $18,000, less deductions for employees' income taxes and FICA taxes. Issued check for payment of the salaries. 21 28 28 31 nd 31 - 3 ebooks.cenreader.com/#!/reader/ f Cost Principles TT Quick of Cost Print Search Annotations Accessibilit Tour Accounting Mong wage. Following is a narrative of transactions completed during January: Cost bor Costs st Problems Jan.7 Recorded total earnings of factory employees amounting to 568,200, less deductions for employees' income taxes and FICA taxes 7 Issued check for payment of the payroll 14 Recorded total earnings of factory employees amounting to $66.300, less deductions for employees' income taxes and FICA taxes 14 Issued check for payment of the payroll 15 Recorded administrative salaries, $10,000, and sales salaries, $18,000, less deductions for employees' income taxes and FICA taxes 15 Issued check for payment of the salaries Recorded total earnings of factory employees amounting to $72,500, less deductions for employees' income taxes and FICA taxes. 21 Issund check for payment of the payroll. 28 Recorded total earnings of factory employees amounting to $74,200, less deductions for employees' income taxes and FICA 21 28 31 Issued check for payment of the payroll Recorded administrative salaries, $10,000, and sales salaries, $18,000, less deductions for employees' income taxes and FICA 31 31 Issued check for payment of the salaries. The following wages and salaries were earned or accrued during January Direct labor Indirect labor Administrative salaries Sales salaries. $302,500 22.500 20,000 36,000 Megerle Custom Cabinet Co. used the following form to compute the amount of payroll taxes incurred: ing for Factory Cost ral Procedu... Cost onal Proc... Taxable Earings FICA Federal State Total Unemployment Unemployment Payroll Tax Taxes Items Factory wages... Administrative salaries Sales salaries Total ster Budget and d Cost rials, Lab... counting for Required: 1. Prepare the journal entries to record the foregoing transactions, including the distribution of payroll costs. Analysis for 176 IN ebooks.cenreader.com/#!/reader/8000507a-ba extbook: nciples of Cost counting Principles Q TT of Cost Quick Print Tour Search Annotations Accessibilit Accounting 31 Issued check for payment of the salaries. 31 The following wages and salaries were earned or accrued during January ing Labor Cost Direct labor Indirect labor Administrative salaries Sales salaries ng for Labor Costs rs' Pay... $302,500 22.500 20,000 36,000 ccrual bor Cost Problems Megerle Custom Cabinet Co. used the following form to compute the amount of payroll taxes incurred: lem 1 Taxable Earings Items Federal State Total Unemployment Unemployment Payroll Tax Tax Taxes FICA Tax Factory wages. Administrative salaries Sales salaries. Total....... em 2 Required: 1. Prepare the journal entries to record the foregoing transactions, including the distribution of payroll costs. 176 2. Complete the previous form to show the payroll taxes imposed on the employer for January sting for Factory Cost -al Procedu... Cost anal Proc... 3. Prepare the journal entry to distribute payroll taxes, assuming that the payroll taxes imposed on the employer for factory wages are to be charged to Factory Overhead, the taxes for administrative salaries are to be charged to Miscellaneous Administrative Expense, and the taxes for sales salaries are to be charged to Miscellaneous Selling Expense. 4. Assume that the factory employees worked on January 29, 30, and 31. What was the amount of accrued wages on January 31? (Hint: Assume that there were no accrued wages at the beginning of the month.) cer Budget and Cost als, Lab... unting for