Scribd
Upload
2K views16 pages

Chapter 4 COST ACCOUNTING DE JESUS

de jesus cost accounting

Uploaded by

Christine Claire Lagpacan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF or read online on Scribd
2K views16 pages

Chapter 4 COST ACCOUNTING DE JESUS

de jesus cost accounting

Uploaded by

Christine Claire Lagpacan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF or read online on Scribd
  • Accounting for Labor: This section introduces the concept of labor costs, classification, and their impact on a company's cost accounting.
  • Employee Contributions and Deductions: Discusses the calculation of employee contributions and deductions, including tax implications.
  • Journal Entries: Provides examples of journal entries associated with payroll and labor-related expenses in different accounting scenarios.
  • Exercises and Review Questions: Contains practice exercises and review questions to reinforce knowledge on accounting for labor costs.
  • Problems and Solutions: Presents detailed problem sets and solutions to apply concepts in practical scenarios related to labor accounting.
| Chapter 4 om Koo Accounsine rontapon By SIL ~ chm 4 Learning Objectives At the end of the chapter, the students should be able to: 1. Know the classification of labor costs. 2. Prepare journal entries of labor costs. 3. Know the different departments responsible for labor costs. Know the different methods of time keeping, Differentiate the types of wage plans. Know the advantages and disadvantages of different wage plans. Know the accounting for overtime premium. Enumerate the different employer's labor contributions. een ane Know the different labor time losses. Labor cost is one of the primary costs of production system. It consists of workers’ wR | payroll who are needed to process and convert raw materials into finished ed Itis classified into (1) direct and (2) indirect labor cost. Direct labor iS @ payroll” costs that are paid to workers who are directly engaged in the conversion process of raw materials to finished goods (i.e. wages of laborers who are actually involved Jaboris any'payrdll costs that are paid to a worker that supports the production’ Syl Direct Labor D. Sales Salary 8. Net pay is computed based on: a. Gross pay less income tax withheld b. Gross pay less S85, Philhealth, Pag-ibig contribution Grose pay less SSS, Philheslth, Pag-ibig contribution and withholding 24 Chapter A Closer look on Cost Accounting Gross pay less 88S, Philhalh, Pagitig entbution gen to employee by the employer. oe - | 9. Which ofthe oliowings not charge te fatoryovertiead control aco wonton contribution of employee af ae 5 Overtime premium pay ofan employee © Holiday ay Shit Boman 10. The wage in excess of regular rate paid ater « normal working hour ie? a.” Shift Premium ©. Holiday pay be Overtime premium «Vacation pay 11. A payroll costs that are paid to workers who are directly engnged in the conversion process of raw materials to finished goods a. Indirect Labor , Administrative Salary be Direct Labor 4. Sales Salary 12, When overtime premium is charged to a specific ob, t should be debited to: a, Factory Overhead Control account, B._ Expense account & Workin Process account Cost of goods sold account 13, The following are examples of fringe benefit, except 8. Holiday pay ¢, Health Insuirance of employee b. Sickleave pay A Overtime pay 16, [tis a wage that is determined by the number of hours worked, A. Time based eyater ‘Piece work system b. xed Salary per month 4. Bonus schemes 15, SSS, Philhealth and Pag-ibig Contribution are levied on a. Employee only ¢, Employer and Employee b. Employer only 4. Employer nor Employee 16, The following are charged to the factory overhead control account, except: a. SSS employer share ¢. Shift Premium pay B. Sick Ieave pay 4 Withholding Tax of the employee 17, A fringe benefit of office staff is charged to 8, Workin Process account «Selling Expenses BW Administrative Expenses __d. Factory Overhead Control 215, 38 19. 21 22, 23, 25, 26, 2”. Accounting for Labor Premium pay of factory supervisor is charged Shit ork in Prowse acsnunt e-Seling Expenses, Beer neatie Expenses _p/Factog Overhead Control ite Premium of factory Inborer i charsed to Shi Cain Process acount, Seling Expenses f Muinistrative Bapenses 2 Factory Overhead Control age Benefit of «factory labore is changed to Pring ockin Process account c, Selling Expenses Administrative Expenses _/Factory Overhead Control Iris the amount paid tothe employee afterthe employer makes a deduction Tevincome tox another vation axoust, S Grose pe + & Total labor cost cost contro, except ‘te following are departments responaibie for abor cost cont Payroll Bepactment @ Pereonnel Department Sy PechasingDepartment Cost Accounting Department ‘This department is responsible for the accumulation of the total hours worked spent by each worker on a job, product, and processes. 2 Production Department ', Payroll Deparment b. Cost Accounting Department a. Timekeeping Department ‘This department is responsible for carrying out labor policies laid down by the top management ‘a. Production Department 5. Payroll Department I refers to recording the total number hours each worker spent in carrying Cost Accounting Department _Ai Personnel Department out the job. Ss. Cost Accounting «, Time-booking b. Timekeeping 4. Financial Accounting ‘This department is responsible for the preparation of the plan for each job and process, maintaining efficient working condition, conducting time and motion study, merit rating. 2 Production Department . Payroll Department 1b. Cost Accounting Department Engineering Department ‘This department is responsible for the computation of the total gross camings and the amount of the payroll deductions. &, Cost Accounting Department ¢. Production Department bi Payroll Department 4. Engineering Department 216 ee ————————S—— Chapter 4: A Closer look on Cost Accounting 28. It refers to the analysis of time of each worke! operation, process or jobs, & Time-booking D. Timekeeping terms of department, Cost Accounting d. All of the above 2. Iti aage plan calculated by mutpying the mumber of nite produce a specified rate per unit. nae ee 2. Phe based wage plan . Piece based wage plan b. Modified based wage plan wie “A, None of the choices 30. The following are advantages of time based wage plan except: 4a. , Simple and economical to use. br“ It provides additional incentives for workers to achieve production efficiency because they are paid based on the time spent in the factory, ©. Itgives a sense of security to workers because they will know that are paid based on the time spent in the factory. 4. Tt controls material wastages as the job is not done in’a huny, 81. It includes preparation of payroll, effective utilization of human resources, ‘minimizing labor costs, discipline in attendance and determining the ideal labor time and machine time. a. Time-booking be Timekeeping c. Cost Accounting @.Allof the above 92, If the overtime premium is caused by a regular order which cannot be completed in the regular working hours, itis debited to: ‘2. Work in Process Inventory. Finished Goods Inventory bi Factory Overhead Control, Expenses 33, If the overtime premium is caused by the rush orders upon specific request ofa customer with the knowledge that overtime is required to finish the job it is debited to: fa. Finished Goods inventory D. Expenses: _o/Work in Process inventory ‘Factory Overhead Control 34. The following are examples of the employer's contributions except: a. SSS contribution ¢. Withholding taxes b. Philhealth contribution <. Pag-ibig contribution 35, The following are example of labor time losses except: a. Idle time be Overtime & Machine set-up time Labor cost of feworking effective units 27 Accounting for Labor ig are workers payroll dedetions, exer pS osoel ¢. Pag-ibig contribution Genone of the choices 1a for the month of September of Garden Grove Com._ 3 fl 96. The S58 contribution ee eting mes 97, The followingare the dat ‘oie Feros | Heal oars Worked at ear [eke | sarpmer pra a Shs WG rE a s 3_{ 10 2 2 we (00, Ti 2 ae PP sss xe loyee one and one-half times the regular rate for its empl Garden Grove pays its empl onda Genta don verre worked over 40 and the rate for hours worke: is e. The following are deductions from gross earhings: SSS 8% regular rat we Philhealth 2%; Pageibig 2% and Income tax 25%, egy Hon mach fh tata al ct be char 9 he tn erent To control account? ae P42, 100 oa? ors yeeemt , PO,838 @rs: ‘tne total amount charged to work in Proces: ae 2421004735 P43, 525 ae @ rs which ish Corp provides for an incentive acheme for ite factory works icish Corp Proved minimum guaranteed wage and a piece rate. Bac features ig P200 per piece with a minimum guaranteed wage of PIS, ot eck Production report for the week show el Eaployee Namie a 4 Irene 2 ules 80 Harold 65 / What is the amount of the weekly payroll that should be charged to work in rocess account? & "P61,000 . P64,000 160,000 “ P63,000 28

You might also like