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2021 Answer Chapter 4
2021 Answer Chapter 4
Answer Key
TRUE OR FALSE
1.F
2.T
3.T
4.F
5.F
6.T
7.T
8.T
9.T
10.T
11.T
12.F
13.T
14.F
15.F
16.T
17.F
18.T
19.T
20.F
21.T
22.T
23.T
24.T
25.T
26.F
27.T
28.F
29.T
30.T
31.T
32.T
33.F
34.T
35.F
36.F
37.T
38.F
39.T
40.T
41.T
42.T
43.T
44.F
45.T
46.T
47.T
48.T
49. F
50. T
51.
Multiple
Choice 1. A
2. D
3. B
4. D
5. B
6. D
7. A
8. C
9. A
10. B
11. B
12. C
13. D
14. A
15. C
16. D
17. B
18. D
19. D
20. D
21. A
22. B
23. D
24. D
25. B
26. D
27. B
28. A
29. C
30. B
31. B
32. B
33. C
34. C
35. B
36. D
37. D/A
38. A/A/C
39. B/C/A
40. A/A/C
41. B
42. A
43. B/D/B/A
44. A/C
45. D/C/B/C
46. B/C/C
47. B
Straight Problems
Problem 1
Solution
a. Gross Pay (120 hours x P50) 6,000 Less: Taxes and deductions 20% x (6,000 -
1,000) 1,000 b. Net Pay 5,000
Problem 2
A.
SSS Contribution
Employees Employer Share Employee Share Total
Mark 1,600 800 2,400
Joan 1,200 600 1,800
Irene 1,600 800 2,400
Earl 1,600 800 2,400
Marie 1,280 640 1,920
Total 7,280 3,640 10,920
Pag-Ibig Contribution
Employees Monthly Gross Employer Share Employee Share
Earnings
Mark 35,000 700 700
Joan 15,000 300 300
Irene 20,000 400 400
Earl 25,000 500 500
Marie 16,000 320 320
Total 111,000 2,220 2,220
Philhealth
Contribution
Employees Monthly Gross Monthly Premium Employer Share Employee Share
Earnings
Mark 35,000 962.50 481.25 481.25
Joan 15,000 412.50 206.25 206.25
Irene 20,000 550.00 275.00 275.00
Earl 25,000 687.50 343.75 343.75
Marie 16,000 440.00 220.00 220.00
Total 111,000 3,052.50 1,526.25 1,526.25
Mark Irene
Gross Earnings 35,000.00 Gross Earnings 20,000.00 Less: SSS Contribution 800.00 Less: SSS
Contribution 800.00 Pag-Ibig Contribution 700.00 Pag-Ibig Contribution 400.00 Philhealth
Philhealth contribution 481.25 contribution 275.00
Taxable Income 33,018.75 Taxable Income 18,525.00
Joan Earl
Gross Earnings 15,000.00 Gross Earnings 25,000.00 Less: SSS Contribution 600.00 Less: SSS
Contribution 800.00 Pag-Ibig Contribution 300.00 Pag-Ibig Contribution 500.00 Philhealth
Philhealth contribution 206.25 contribution 343.75
Taxable Income 13,893.75 Taxable Income 23,356.25
Marie
Gross Earnings 16,000.00
Less: SSS Contribution 640.00
Pag-Ibig Contribution 320.00
Philhealth contribution 220.00
Taxable Income 14,820.00
WTAX
Mark
First 20,833 0 Excess (33,018.75 - 20,833)x 20% 2437.15 WTAX
2437.15
Joan 0 Irene 0
Earl
First 20,833 0 Excess (23,356.25 - 20,833) x 20% 504.65 WTAX
504.65
Problem 5
(A x 2 x B) (D - E) (F x 50% x A) (D x A)
Employ A B C D E F G H (H + G + C)
ee
Name Hou Sund Sunday Monda Regul Excess Overtime Regul Total
rly ay Pay y- ar Premium ar Gross
Rate Hour Saturd hours Pay Earnings
s ay
hours
Brian 900 6 10,800 48 40 8 3,600 43,200 57,600
Chris 950 - - 49 40 9 4,275 46,550 50,825
Regie 750 1 1,500 52 40 12 4,500 39,000 45,000
Tom 900 5 9,000 51 40 11 4,950 45,900 59,850
Jack 1,000 9 18,000 47 40 7 3,500 47,000 68,500
281,775
Problem 6
Answer:
Bonus (18,000 / 11.5 mos) 1,565 Vacation leave incentive (18,000 x 1/2) / 11.5 mos 783 Pension
(4,000 / 12 mos) 333 Total fringe benefits liability 2,681
Problem 7
Answer:
1. To record labor incurrence
Payroll 1,000,000
SSS Premium Payable 20,000 Philhealth Premium Payable 10,000 Pag-ibig
Premium Payable 10,000 Withholding taxes Payable 100,000
Accrued Payroll 860,000
2. To record labor distribution
Work in Process 500,000
Factory Overhead Control 200,000
Administrative Salary 250,000
Sales Salary 50,000
Payroll 1,000,000
3. To record employer’s contribution
Factory Overhead Control (70%) 42,000
Administrative Expenses (25%) 15,000
Sales Expenses (5%) 3,000
SSS Contribution payable 40,000 Philhealth Contribution payable 10,000 Pag-ibig
Contribution payable 10,000
4. To record Payment of accrued payroll
Accrued Payroll 860,000
Cash in Bank 860,000
Problem 8
Answer:
1. To record labor incurrence
Payroll 8,500,000
SSS Premium Payable 425,000
Philhealth Premium Payable 85,000
Pag-ibig Premium Payable 85,000
Withholding taxes Payable 2,125,000 Accrued Payroll 5,780,000
2. To record labor distribution
Work in Process 8,500,000
Payroll 8,500,000
3. To record payment of accrued payroll
Accrued Payroll 5,780,000
Cash in Bank 5,780,000
Problem 9
Answer:
Employee Hourly Rate (hourly Over time Overtime Sunday
Name rate x total hours premium Premium
hours) excluding
Sundays
Total Hours Regular
worked Earnings
A 200 48 9,600 8 800 -
B 250 52 13,000 9 1,125 750
C 200 56 11,200 12 1,200 800
D 300 51 15,300 11 1,650 -
X 175 50 8,750 7 613 525
Payroll 65,313
SSS Premium Payable 5,225.00 Philhealth
Premium Payable 1,306.25 Pag-ibig Premium
Payable 1,306.25 WTAX Payable 16,328.13
Accrued Payroll 41,146.88
Problem 10
Answer
Abnormal
Mr. Sy Factory Supervisor 6 2,400 2 800 Mr. Yee Factory laborer 8 2,000 2 500 Mr. Ty Factory
laborer 8 2,000 2 500
6,400 1,800
Journal Entry
FOH Control 2,400
Work in Process 4,000
Expenses 1,800
Payroll 8,200
The normal idle time of factory supervisor is charged to FOH while the normal idle time of factory worker
is charged to WIP.