Submitted by: Limense, Princess Kathleen S.

(Solution & Answer included.)

Assignment #1 ANSWER: LETTER A. 2,205

Jose Santos worked 46 hours in one week at a rate of P45 an hour. He is paid one and a half times the
regular rate for hours worked in excess of P40. What is the gross earnings of Jose Santos?

a. P2,205

b. P2,070

c. P2,340

d. P1,800

SOLUTION:

(40hrs*45pesos)+(6hrs*1.5*45pesos)=

1800+405= 2,205

Assignment #2 ANSWER: LETTER A. P1,599.60

The data below pertains to the earnings of Pedro Castro for the week ended June 16

Hours and rate 42 hours worked at P40 an hour

Earnings to date P14

Overtime rate One and a half times the regular rate for hours worked in excess of 40 hours

Withholding tax 3% of gross earnings

SSS contributions 2% of gross earnings

Phil. Health contributions 1% of gross earnings

Pag-Ibig contributions 1% of gross earnings

What is the net pay for Pedro Castro for the week?

a. P1,599.60

b. P13,879.60

c. P1,629.60

d. P13,580

SOLUTION: [(40hrs*40pesos)+(40pesos*1.5*2hrs)]*93%= 1599.6

Assignment #3 ANSWER: LETTER B. P9,900

Mike G, a production employee is paid P180 per hour for a regular work of 40 hours. During the week
ended March 23, Mike G worked 50 hours and earned time and a half for overtime hours.

What is the amount that should be charged to Work in Process account if the overtime premium is
charged to production worked on during the overtime hours?

a. P9,000

b. P9,900

c. P8,900

d. P9,500

SOLUTION: (40hrs*180pesos)+(10hrs*1.5*180pesos)= 9900

Assignment #4 ANSWER: LETTER A. P9,000

Using the same data in No. 3, what is the amount that should be charged to Work in Process account, if
the overtime premium is charged to manufacturing overhead?

a. P9,000

b. P9,900

c. P 8,900

d. P 9,500

SOLUTION: (50hrs*180pesos)= 9000

Assignment #5 ANSWER: LETTER B. 2,016

Four factory workers and a supervisor make a team in the Machining Department. The supervisor earns
P100 per hour, and the combined hourly charge of the four workers is P320. Each employee is entitled
to a 2-week paid vacation and a bonus equal to 4 weeks’ wages each year. Vacation pay and bonuses are
treated as indirect costs and are accrued over the 50 week work year. A provision in the union contract
does not allow these employees to work in excess of 40 hours per week.

What is the amount to be charged to Manufacturing Overhead Control account?

a. P1,344

b. P2,016

c. P20,000

d. P6,720

SOLUTION:
 Per Hour

Supervisor 100

Employee 320

Total 420

Vacation= 420 x 80= 33,600/50= 672

Bonus= 420 x 160 = 67,200/50=1,344

Total 33,600+67,200= 100,800/50= 2,016

Assignment #6 ANSWER: LETTER B. 1,344

Using the same data in no. 5, what is the estimated liability for bonus?

a. P0

b. P1,344

c. P6,720

d. P20,160

SOLUTION:

Per Hour

Supervisor 100

Employee 320

Total 420

Vacation= 420 x 80= 33,600/50= 672

Bonus= 420 x 160 = 67,200/50=1,344

Total 33,600+67,200= 100,800/50= 2,016

Assignment #7 ANSWER: LETTER E. 672

Using the same data in no. 5, what is the estimated liability for vacation pay?

a. P0

b. P20,160

c. P1.344

d. P720

e. P672

SOLUTION:
 Per Hour

Supervisor 100

Employee 320

Total 420

Vacation= 420 x 80= 33,600/50= 672

Bonus= 420 x 160 = 67,200/50=1,344

Total 33,600+67,200= 100,800/50= 2,016

Assignment #8 ANSWER: LETTER D. 4,320

The pay stub of Jing Guerrero, employee No. 106 who works on the production line, showed the
following for a 2-week pay period:

Gross earnings P4,560

Income tax withheld 611.68

SSS premiums withheld 342

Phil. Health premiums withheld 112.16

Pag-ibig premiums withheld 222

Union dues 44

Jing Guerrero works a regular 40 hours week and is paid P48 per hour regular time, and time and a half
for overtime.

She is also paid an additional P1,092.80 in benefits for the 2 week pay period with regard to the
employer’s contribution to the company’s SSS and Phil. Health premiums.

What is the amount to be charged to Work in Process for employee no. 106 for the 2-week period,
assuming that any overtime work is not traceable to a particular Job order?

a. P6,480

b. P8,880

c. P3,840

d. P4,320

SOLUTION:

Gross earning 4,560

Income tax -611.68

SSS -342
Phil. Health -112.16

Pag-ibig -222

Union dues -44

Net earning 3228.16

Add Payment 1092.8

Total 4320.96