For the second week (5 day workweek) in October 2020, Lily Company's records show direct labor, P180,000
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Question:
For the second week (5 day workweek) in October 2020, Lily Company's records show
direct labor, P180,000 for 60 workers; indirect factory labor, P30,000 (10 workers);
sales salaries, P42,000(14 employees); and administrative office salaries, P15,000 (5
employees). The workers' daily wage is P600.
Required:
(1) Prepare the entry to record the payroll liability.
(2) Prepare the entry to distribute payroll cost.
(3) Prepare the entry to record the employer's payroll taxes in one compound entry.
Deductions & Contributions
Employee
Employer
Withholding Tax
20%
SSS contributions
3.5%
7.5%
Philhealth contribution
1.375%
1.375%
HDMF
P100
P100
EC Contribution
P 10
Expert Answer:
Lily Company Payroll Entries October Week 2 Assumptions We assume a 5day workweek for Octobers second week We assume all employees worked the entire w... View the full answer
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