Principles of Cost Accounting: P3-11 The factory payroll for the week is $200,000

Principles of Cost Accounting

P3-11 Accounting for bonus, vacation pay, and holiday pay

The factory payroll for the week is $200,000, consisting of $140,000 earned by 100 direct laborers and $60,000 earned by 30 indirect laborers. The total of factor bonuses to be received at year end is $400,000. All factory workers received a two-week paid vacation and five paid holidays.

Required:

Prepare entries to distribute the weekly payroll and the costs and liabilities related to the bonus, vacation, and holiday pay, assuming that the fringe benefits of the direct laborers are charged to factory overhead.
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