The following form is used by MoJo Manufacturing Company to compute payroll taxes incurred during the month of 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 payrolltaxes.

Transcribed Image Text:

Unemployment Taxes Earnings FICA Federal State Total Payroll for Tax ax Tx Taxes Imposed Month 8% 1% 4% 0n Employer Classification of Wages and Salaries Direct labor ...88,1 Indirect labor Pay roll taxes on factory wages 16,220 Sales salaries 11,500 taxes