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

Crowe, Eastwood, and Carey are production workers, and Penn is the plant manager. Giamatti 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: Crowe, $12,000; Eastwood, $7,800; Carey, $11,500; Penn, $89,400; and Giamatti, $32,800.
Required:
The solution to this problem requires the following forms, using the indicated column headings:

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 payrollperiods.

Transcribed Image Text:

Gross Earnings-Week Ending Employee Name R. Crowe C. Eastwood J. Carey S. Penn P. Giamatti All regular time 11/22 S 290 260 340 2,032 850 11/8 s 300 280 320 2,032 800 S 280 270 300 2,032 760 11/29 s 320 280 280 2,032 870 Employee Earnings Record Week Ending Weekly Gross Payroll Record Employee's Name Labor Cost Summary Week Ending Dr. Work in Process Gross Earnings Withholdings (2 columns Earnings Direct Labor) Dr. Factory Overhead Accumulated Gross Earnings (Indirect Labor) FICA Tax Income Tax (10%) Weekly Earnings Subject Dr. Administrative Salaries (Office) Cr. Payroll (Total) to FICA Net Amount Paid Withholding (2 columns): FICA Tax Income Tax (10%) Net Amount Paid