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Megerle Custom Cabinet Co Uses The Job Order Cost System
Megerle Custom Cabinet Co Uses The Job Order Cost System
Megerle Custom Cabinet Co Uses The Job Order Cost System
cost system
Megerle Custom Cabinet Co uses the job order cost system
Megerle Custom Cabinet Co. uses the job order cost system. In recording payroll transactions,
the following accounts are used:
Payroll
Factory employees are paid weekly, while all other employees are paid semimonthly on the
fifteenth and the last day of each month. All salaries and wages are subject to all taxes. The
income tax withheld amounts to 10% of gross wages.
Jan.7 Recorded total earnings of factory employees amounting to $68,200, less deductions for
employees’ income taxes and FICA taxes.
14 Recorded total earnings of factory employees amounting to $66,300, less deductions for
employees’ income taxes and FICA taxes.
15 Recorded administrative salaries, $10,000, and sales salaries, $18,000, less deductions for
employees’ income taxes and FICA taxes.
21 Recorded total earnings of factory employees amounting to $72,500, less deductions for
28 Recorded total earnings of factory employees amounting to $74,200, less deductions for
employees’ income taxes and FICA taxes.
31 Recorded administrative salaries, $10,000, and sales salaries, $18,000, less deductions for
employees’ income taxes and FICA taxes.
31 The following wages and salaries were earned or accrued during January:
Megerle Custom Cabinet Co. used the following form to compute the amount of payroll taxes
incurred:
Required:
1. Prepare the journal entries to record the foregoing transactions, including the distribution of
payroll costs.
2. Complete the previous form to show the payroll taxes imposed on the employer for January.
3. Prepare the journal entry to distribute payroll taxes, assuming that the payroll taxes imposed
on the employer for factory wages are to be charged to Factory Overhead, the taxes for
administrative salaries are to be charged to Miscellaneous Administrative Expense, and the
taxes for sales salaries are to be charged to Miscellaneous Selling Expense.
4. Assume that the factory employees worked on January 29, 30, and 31. What was the amount
of accrued wages on January 31?