Muh.

Ikram Ashari
A31115014
Problem 3-6 Journal entries

C. Hughes
N. Corona
S. Dunn
L. Hlawitscha
M. OShea
D. Oster
M. Pertrossian
A. Rifkin
A. Rosman
A. Uscinski
Totals

Computations
Direct labor
80%*$250= $200
80%*235=
188
80%*170=
136
80%*200=
160
80%*190=
152
80%*185=
148
80%*160=
128
80%*190=
152
80%*210=
168
80%*170=
136
1568

Indirect labor
20%*$250= $50
20%*235=
47
20%*170=
34
20%*200=
40
20%*190=
38
20%*185=
37
20%*160=
32
20%*190=
38
20%*210=
42
20%*170=
34
392

a. Record the payroll

Work in process inventory ......................................1568
Factory overhead control......................................... 392
Payroll payable............................................ 1960
b.

Record the employee taxes and pay the payroll

Fica (6%*1960) .......................... 117,6
Futa(2%*1960).......................... 39,2
Sui(5%*1960).............................98
Income Tax witheld(2%*1960).. 39,2
Payroll Payable.......................................................1960
Employee Income taxes payable...............
39,2
Employee fica taxes payable.....................
117,6
Federal withholding tax.................................
71,6
State withholding tax......................................
54,65
Cash(to employee=residual balance)......
1.679,95

c. Record employer taxes and fringe benefit cost

d. Factory overhead control ($ 1.960 x 13%)..................$ 254,8
Employer FICA taxes payable ($ 1.960 x 6%)..........
117,6
Employer FUTA taxes payable ($ 1.960 x 2%).........
39,2
Employer SUI taxes payable ($ 1.960 x 5%)............
98

Problem 3-3
a. 1. Total Conversion Costs

Direct labor......................................30,100
Indirect labor...................................11,900
Employee salaries......................
42,000
Factory Overhead Costs
Indirect materials............................................$15,500
Sales salaries....................................................26,750
Other administrative expenses........................36,000
Bonus factory supervisor..................................750
Other factory overhead...................................45,000
Office salaries..................................................20,000
Other sales expenses......................................10,500
Indirect labor...................................................11,900
Union dues(6%*42,000)...................................2520
Fica taxes(7%*42,000)......................................2940
Federal unemployement tax(0,80%*42,000)...336
Holiday pay acccrual(0,30%*42,000)................126
State income taxes(3%*42,000)........................1260
Vacation pay accrual(4,6%*42,000)..................1932
Federal income taxes(12%*42,000)..................5,040
State unemployment taxes(2,7%*42,000)........1134
Total contribution insurance(3,2/2%*42,000)...672
Bonus accrual(1,07%*42,000)............................449,4
Health insurance(2,3%*42,000).........................966
Total contribution pension(o,75*4,8%*42,000).1512
Totals..................................................................185287,4
Conversion cost
Direct labor.......................................................30,100
Overhead costs................................................. 185287,4
Totals.................................................................. 215387,4

2. Total Prime Cost

Prime cost
Direct Materials.............$52,550
Direct Labor....................30,100
Total .............................. 82.650
b. 1. Total conversion cost
Direct labor
Direct labor.......................................................30,100
Union dues(6%*42,000)...................................2520
Fica taxes(7%*42,000)......................................2940

Federal unemployement tax(0,80%*42,000)...336

Holiday pay acccrual(0,30%*42,000)................126
State income taxes(3%*42,000)........................1260
Vacation pay accrual(4,6%*42,000)..................1932
Federal income taxes(12%*42,000)..................5,040
State unemployment taxes(2,7%*42,000)........1134
Total contribution insurance(3,2/2%*42,000)...672
Bonus accrual(1,07%*42,000)............................449,4
Health insurance(2,3%*42,000).........................966
Total contribution pension(o,75*4,8%*42,000).1512
Totals.................................................................. 48987,4

Overhead cost
Indirect materials............................................$15,500
Sales salaries....................................................26,750
Other administrative expenses........................36,000
Bonus factory supervisor..................................750
Other factory overhead...................................45,000
Office salaries..................................................20,000
Other sales expenses......................................10,500
Indirect labor...................................................11,900
Totals................................................................166400
Conversion cost
Direct labor...........................48987,4
Overhead cost......................166400
Totals...................................215387,4
2. total prime cost
Direct labor........................ 48987,4
Direct materials................. 52,550