184 Chapter 5

1. Using the data in No. 5, what is the estimated liability for bonus?

a. P -0-
b. P 1,344
c. P 6,720
d. P20,160
2. Using the data in No. 5, what is the estimated liability for vacation Pay?

a. P -0-
b. P20,160
c. P 1,344
d. P 720
3. 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 P4,560.00

Income tax withheld 611.68
SSS premiums withheld Phil. Health 342.00
premiums withheld Pag-ibig premiums 112.16
withheld 222.00
Union dues 44.00
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 Pl,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
 Chapter
18 2
5 4. Using the information in No. 8, how much is to be charged to
Manufacturing Overhead Control account for the 2-week period for
employee No. 106?

a. Pl,092.80
b. P4,320.00
c. P4,560.00
d. Pl,332.80

5. Ms. Jacky, a production worker earns P14,904 a month, and the

company pays one month's salary as bonus at the end of the year.
Ms. Jacky is also entitled to a half month paid vacation. The
company also pays P2,070 a year into a pension fund of the worker.
All labor- related fringe benefits of production workers are treated
as manufacturing overhead. Bonus, vacation pay, and pension costs
are charged to production during the 11V2 months the employee is
at work. What is the total liability for bonus, vacation and pension?

a. P2,484
b. P2,124
c. P2,540
d. Pl,206