Please assist with the following problem Employees earnings

Please assist with the following problem:

Employees’ earnings using hourly and piece-rate methods

The payroll records of Grove Machining Co. show the following information for the week ended April 17:

Employee

Classification

Hours Worked

Production (Units)

Rate

Income

Tax

W/held

Manressa, C.

Direct

42

$18.00/hr

$80

Dorr, M.

Direct

48

$17.60/hr

84

Ginty, D.

Direct

39

2,000

$.44/piece

110

Norris,D

Direct

40

1,800

$.44/piece

100

Rancifer, K.

Indirect

40

$800/wk

100

Greer, B.

Indirect

50

$1,600/wk

240

Holbert, R.

Indirect

40

$1,400/wk

120

Hourly workers are paid time-and-a-half for overtime.

a. Determine the net earnings of each employee

b. Prepare the journal entries for the following:

1. Recording the payroll.

2. Paying the payroll.

3. Distributing the payroll. (Assume that the overtime premium will be distribute to all jobs worked on during the period.)

4. Recording the employer’s payroll taxes. (Assume that none of the employees has achieved the maximum wage bases for FICA and unemployment taxes.)

Employee	Classification	Hours Worked	Production (Units)	Rate	Income Tax W/held
Manressa, C.	Direct	42		$18.00/hr	$80
Dorr, M.	Direct	48		$17.60/hr	84
Ginty, D.	Direct	39	2,000	$.44/piece	110
Norris,D	Direct	40	1,800	$.44/piece	100
Rancifer, K.	Indirect	40		$800/wk	100
Greer, B.	Indirect	50		$1,600/wk	240
Holbert, R.	Indirect	40		$1,400/wk	120

Solution

Employee Classification Hours worked Production (Units) Rate (Hr./Piece/Week) Overtime hours Overtime pay Gross Earnings Income tax withheld FICA Tax withheld Net Earnings Manressa C. Direct 42 18 2 27 774 80 59.21 634.789 Dorr. M. Direct 48 17.6 8 26.4 915.2 84 70.01 761.1872 Ginty D. Direct 39 2000 0.44 880 110 67.32 702.68 Norris D. Direct 40 1800 0.44 792 100 60.59 631.412 Rancifer K. Indirect 40 800 800 100 61.20 638.8 Greer B. Indirect 50 1600 1600 240 122.40 1237.6 Holbert R. Indirect 40 1400 1400 120 107.10 1172.9 Salaries expense Dr. 7161.2 FICA Tax payable 547.83 Federal Withholding payable 834 Net payroll payable 5779.37 Net payroll payable Dr. 5779.37 Cash 5779.37