The following form is used by Matsuto Manufacturing Co. to compute payroll taxes incurred during April:

Required:
1. Using the above form, calculate the employer€™s payroll taxes for April. Assume that none of the employees has achieved the maximums for FICA and unemployment taxes.
2. Assuming that the employer payroll taxes on factory wages are treated as factory overhead, the taxes covering administrative salaries are an administrative expense, and the taxes covering sales salaries are a selling expense, prepare a general journal entry to record the employer€™s liability for the April payroll taxes.

Transcribed Image Text:

Unemployment Taxes Earnings FICA Federal State Total Payroll Classification of Wages and Salaries Direct labor . . . . Indirect labor.. Payroll taxes on factory wages. for Tax Tax Tax Taxes Imposed Month 8% 1% 4% On Employer $88,180 16,220 12,000 11,500 Sales salaries.