An analysis of the payroll for the month of November for Projection Inc. reveals the information shown:

*All regular time
Hathaway, Kunis, and Portman are production workers, and Streep is the plant manager. Williams is in charge of the office. Cumulative earnings paid (before deductions) in this calendar year prior to the payroll period ending November 8 were as follows: Hathaway, $12,000; Kunis, $7,800; Portman, $11,500; Streep, $89,400; and Williams, $32,800.

Required:
The solution to this problem requires the following forms, using the indicated column headings:

Net Amount Paid
1. Prepare an employee earnings record for each of the five employees.
2. Prepare a payroll record for each of the four weeks.
3. Prepare a labor cost summary for the month.
4. Prepare journal entries to record the following:
a. The payroll for each of the four weeks.
b. The payment of wages for each of the four payrolls.
c. The distribution of the monthly labor costs per the labor cost summary.
d. The company's payroll taxes covering the four payroll periods.

Transcribed Image Text:

Gross Earnings-Week Ending Employee Name Hathaway Kunis Portman Streep Williams 11/15 11/22 S 300 280 290 260 340 2,032 850 11/29 s 320 280 280 2,032 870 11/8 280 320 2,032 800 270 300 2,032 760 Employee Eamings Record Week Ending Weekly Gross Earnings Accumulated Gross Payroll Record Employee's Name Gross Earnings Labor Cost Summary Week Ending Dr. Work in Process (Direct Labor) Withholdings (2 columns: Dr. Factory Overhead (Indirect Labor) Earnings FICA Tax Income Tax (10%) Weekly Earnings Subject Net Amount Paid Dr. Administrative Salaries (Office) to FICA Withholding (2 columns Cr. Payroll Total) FICA Tax Income Tax (10%)