Four factory workers and a supervisor constitute one team in the Fabricating Department. The supervisor earns $10 per hour, and the combined hourly direct wages of the four workers is $32. Each employee is entitled to a 2-week paid vacation and a bonus equal to 4 weeks' wages each year. Vacation pay and bonuses are treated as an indirect cost and are accrued over the 50-week work year. A provision in the union contract does not allow these employees to work in excess of 40 hours per week.
Required:
Prepare the journal entry to record the bonus and vacation pay liability applicable to one week's production.