Collier Manufacturing Co. operates on a modified wage plan. During one week€™s operation, the following direct labor costs were incurred:

The employees are machine operators. Piece rates vary with the kind of product being produced. A minimum of $70 per day is guaranteed to each employee by union contract.
Required:
1. Compute the weekly earnings for Travis, Nessman, and Smithers.
2. Prepare journal entries to:
a. Record the week€™s payroll, assuming that none of the employees has achieved the maximum base wage for FICA taxes. The income tax withheld for each employee amounts to 10% of gross wages.
b. Record payment of the payroll.
c. Record the employer€™s share of payroll taxes, assuming that none of the employees has achieved the maximum base wage for FICA or unemployment taxes.

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Units Completed Piece Rate per Employee A. Travis.. L. Nessman. B. Smithers 100 Units $1.20 1.10 1.30 M T WTF 6,800 7,100 6,500 8,000 4,800 6,300 6,400 2,900 2,800 7,000 6,200 6,100 7,100 6,000 2,800