Puno, Erika P.

Assignment #1
Jose Santos worked 46 hours in one week at a rate of P45 an hour. He is paid one and a half
times the regular rate for hours worked in excess of P40.
What is the gross earnings of Jose Santos?
a. P2,205
b. P2,070
c. P2,340
d. P1,800
Solution:
( P 40 × P 45 )+ [ 6 ( 45 ) ( 1.5 ) ]

= A. P2,205

Assignment #2
The data below pertains to the earnings of Pedro Castro for the week ended June 16
Hours and rate 42 hours worked at P40 an hour
Earnings to date P14
Overtime rate One and a half times the regular rate for hours worked in
excess of 40 hours
Withholding tax 3% of gross earnings
SSS contributions 2% of gross earnings
Phil. Health contributions 1% of gross earnings
Pag-Ibig contributions 1% of gross earnings
What is the net pay for Pedro Castro for the week?
a. P1,599.60
b. P13,879.60
c. P1,629.60
d. P13,580
Solution:

Gross Earnings [ ( 40 )( 40 ) ]+[2 ( 40 ) ( 1.5 ) ] = P1,720

W/tax P1,720*3% P51.60

SSS P1,720*2% P34.40
Phil.Health P1,720*1% P17.20
Pag-IBIG P1,720*1% P17.20 P120.40
Net Earning A. P1,599.60

Assignment #3
Mike G, a production employee is paid P180 per hour for a regular work of 40 hours.
During the week ended March 23, Mike G worked 50 hours and earned time and a half for
overtime hours.
What is the amount that should be charged to Work in Process account if the overtime
premium is charged to production worked on during the overtime hours?
a. P9,000
b. P9,900
c. P8,900
d. P9,500
Solution:
( 40 × 180 )+ ¿
= B. P9,900

Assignment #4
Using the same data in No. 3, what is the amount that should be charged to Work in Process
account, if the overtime premium is charged to manufacturing overhead?
a. P9,000
b. P9,900
c. P 8,900
d. P 9,500
Solution:
P180 × 50 hours
= A. P9,000

Assignment #5
Four factory workers and a supervisor make a team in the Machining Department. The
supervisor earns P100 per hour, and the combined hourly charge of the four workers is
P320. Each employee is entitled to a 2-week paid vacation and a bonus equal to 4 weeks’
wages each year. Vacation pay and bonuses are treated as indirect costs and are accrued
over the 50 week work year. A provision in the union contract does not allow these
employees to work in excess of 40 hours per week.
What is the amount to be charged to Manufacturing Overhead Control account?
a. P1,344
b. P2,016
c. P20,000
d. P6,720
Solution:
Supervisor P100/hour
Employees P320/hour
P420

Vacation = 420 Bonus= 420 Manufacturing Overhead control

× 80 ×160 33, 600
33, 600 67, 200 + 67, 200
÷ 50 ÷ 50 P100, 800
P672 P1, 344 ÷ 50
B. P2,016

Assignment #6
Using the same data in no. 5, what is the estimated liability for bonus?
a. P0
b. P1,344
c. P6,720
d. P20,160
Solution:
Supervisor P100/hour
Employees P320/hour
P420

420
×160
67,200
÷ 50
B. P1,344

Assignment #7
Using the same data in no. 5, what is the estimated liability for vacation pay?
a. P0
b. P20,160
c. P1.344
d. P720
e. P672
Solution:
Supervisor P100/hour
Employees P320/hour
P420

420
× 80
33,600
÷ 50
E. P672
Assignment #8
The pay stub of Jing Guerrero, employee No. 106 who works on the production line,
showed the following for a 2-week pay period:
Gross earnings P4,560
Income tax withheld 611.68
SSS premiums withheld 342
Phil. Health premiums withheld 112.16
Pag-ibig premiums withheld 222
Union dues 44
Jing Guerrero works a regular 40 hours week and is paid P48 per hour regular time, and
time and a half for overtime.
She is also paid an additional P1,092.80 in benefits for the 2 week pay period with regard
to the employer’s contribution to the company’s SSS and Phil. Health premiums.
What is the amount to be charged to Work in Process for employee no. 106 for the 2-week
period, assuming that any overtime work is not traceable to a particular Job order?
a. P6,480
b. P8,880
c. P3,840
d. P4,320
Solution:
P48
×80 hours
C. ₱3, 840