the total wages and salaries earned by all employees of phil

the total wages and salaries earned by all employees of phillips manufacturing Co. during the month of Feburary, as shown in the labor cost summary and the scheduled of fixed administrative and sales and salaries , are classified as follows direct labor 526,125 indirect labor 126,210 Administrative salaries 104,200 sales salaries 127,500 total wages earned 884,035 prepare a journal entry to distribute the wages earned during Feburary. What is the total amount of Payroll taxes that will be imposed on the employer for the payroll, assuming that three administrative employees with combined earnings this period of 4,500 have exceeded 8,000 in earnings prior to the period

Solution

a)

Date Accounts Dr Cr
Work in process 526,125
To Direct labor 526,125
[Being direct labor used]
Factory overhead
To indirect labor 126,210
To Administrative salaries 104,200
To sales salaries 127,500
[Being indirect labour costs transferred to overhead]
the total wages and salaries earned by all employees of phillips manufacturing Co. during the month of Feburary, as shown in the labor cost summary and the sche

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