( GRUB = FALSE QUESTIONS = —_—— Indicate whether the following statements are true or false by inserting in the blank space a capital “[” for true or “F” for false. 1. In ideal circumstances, each payroll check is delivered personally to the ——— employee who signs a receipt for it. 2. The amount of income taxes withheld from employee gross pay is an expense to the employer. 3. An entry is made debiting Accrued Payroll and crediting Cash when payroll checks drawn against a payroll checking account are issued, mo se To better provide for a good division of labor, one individual should be in charge of time keeping and payroll record keeping and distribution functions. 5. To avoid congestion at the time clock, it is desirable that one employee punch in or out for several other employees. 6. Remuneration for manual labor, both skilled and unskilled, is ———— commonly referred to as salaries. 7. Total factory labor cost is composed of direct labor and indirect labor 8. Direct labor cost is recorded by a debit to Work in Process account. 9. Payroll deductions are based on the gross earnings of the employee ag (regular cammings plus overtime pay). 10. The amount debited to the Work in Process account ret = amount of direct labor (at regular rate) charged to the di process.Problem 1 The Evergreen Company produces tools on a job order basis. During May, two jobs- were completed, and the following costs were incurred 2 ; Job 401 Job 402 Direct materials P 28,000 P 37,000 Direct labor - regular 18,000 23,000 overtime premium 6,000 Other factory costs for the month totaled P 16,800.. Factory overliead costs are allocated one-third to Job 401 and two-thirds to Job 402. Require a) Describe two alternative methods of recording the overtime premium and explain how the appropriate method affect the cost of each job. b) Compute the cost of Job 401 and Job 402 under each of the two methods.ive plan. Factory workers are Paid of P2,000 per week Following is, ending May 19, 2016. All employes, each employee’s gross pay unt should be charged to work in process? lount should be charged to factory overhead control?1. Employers are required to =a Prepare W-2 forms for ev the calendar year. These beray Gt ded by the emploncoton oe eg a. filing for social security benefits when retired b. filing an income tax retum cvery year. C. filing for unemployment benefits when unemployed d. determining how much ' : income tax to withhi ; 2 for cach pay period next year. Sent TOM a a 2. The employer's portion of SSS premiums is an expense for the emplovee. ‘an expense for the employer. a revenue for the employee. . arevenue for the employer. aoge 3. Income taxes withheld are levied on the a. employee only b. employer only. ¢. both employee and employer in cqual amounts. d. both employee and employer in unequal amounts 4. “Take home pay” or net pay means a. gross pay plus the amount paid for you by your employer for and Medicare Cot tributions gross pay less all deductions. the mount camed per hour time . gross pay less only income tax ithheld. SSS premiums s number of hours worked. aos 5. Which of the following deductions are not levied on the emplover? Income taxes withheld SSS premiums Medicare contributions none of the given. ao opby employees for each ie 1 to pay for the special service, may be charged to Work in process account Administrative expense Factory overhead control 10. Fringe benefits of sales personnel is usuall charged to = a.. Work in process account b. Administrative expense - ¢.. Selling expense hs Factory overhead controlTwenty workers. paid at a wage rate of P1050 per hour. worked 40 hours cach, entirely Job 1010 during the past week. Eight other who are paid at a wage rate of P7.50 per hour, spent half of their 40-hour weck on Job 1010 and the remainder of their time on Job 1011. In addition. Kyle Motus. a part-timer, worked on Job 1010 for 16 hours but was unable to work 4 hours because of the inefficiency of his fellow workers in a prior stage. Kyle earns P9.25 per hour. Salaries for supervisors and maintenance personnel related to Job 1010 and 1011 amounted to P 1.256 1]. Assuming that payroll withholdings are ignored and Jobs 1010 and 1011 are the only jobs being performed. what is the entry to record labor cost? a. Work in process inventory- Job 1010 10,373 Work in process inventory- Job 1011 1.825 Factory overhead control 37 S Payroll payable 12,235 b. Work in process inventory- Job 1010 9.748 Work in process inventory- Job 1011 1,200 Factory overhead control 1,287 Payroll payable 12,235 C. Work in process inventory- Job 1010 9,748 Work in process inventory- Job 1011 1.200 Factory overhead control Sf Loss 1,250 Payroll payable 12,235 d. Work in process inventory- Job 1010 10,998 Work in process inventory- Job 1011 1,200 Factory overhead contro! 37 Payroll payable 12.235 F & B Company pays time and a half for hours in excess of 40 hours per week. An individual is paid P24.00 per hour and worked 44 hours a week. 12.. The weekly eamings of the employee will amount to a. Pay 260) b. P 1,032 C.. P 1,104 ie Pe }036b. 5,275.00 Cc. PS5,217.50_ 2 . d. P 217.50 - a Litton Mfg. Co. pays their employees on a combined minimum rate and p m1 rate plan, The minimum guaranteed daily wage is P420. Any employee wht produces more than 10 shirts receives a bonus. 15 If Mr. Unson produced 14 shirts, what amount should be charged to factory overhead control?. can 70) b. P 8g . P268 d.. P 168