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Accounting For Labor

The document appears to be a midterm exam for an accounting course, with 10 true/false questions related to accounting for labor costs. The questions cover topics like payroll procedures, income tax withholding, journal entries for payroll, responsibilities for timekeeping and payroll, and classifications of direct and indirect labor costs. The document provides a sample exam for students to test their understanding of key concepts in accounting for labor expenses.

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649 views1 page

Accounting For Labor

The document appears to be a midterm exam for an accounting course, with 10 true/false questions related to accounting for labor costs. The questions cover topics like payroll procedures, income tax withholding, journal entries for payroll, responsibilities for timekeeping and payroll, and classifications of direct and indirect labor costs. The document provides a sample exam for students to test their understanding of key concepts in accounting for labor expenses.

Uploaded by

kwekwk
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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ST.

VINCENT COLLEGE OF CABUYAO


Brgy. Mamatid, City of Cabuyao
Laguna 4025
Name: _________________________________________ Score: __________
Section: ________________________________________ Mr. J. F. E. Ambas, CPA

Midterm Exam – Accounting for Labor


True or False.

________ 1. In ideal circumstances, each payroll check is delivered personally to the employee who signs a receipt for it.
________ 2. The amount of income taxes withheld from employee gross pay is an expense to the employer.
________ 3. An entry is made debiting Accrued Payroll and crediting Cash when payroll checks drawn against a payroll checking
account are issued.
________ 4. To better provide for a good division of labor, one individual should be in charge of time keeping and payroll record
keeping and distribution of function.
________ 5. To avoid congestion at the time clock, it is desirable that one employee punch in or out for several other employees.
________ 6. Remuneration for manual labor, both skilled and unskilled, is commonly referred to as salaries.
________ 7. Total factory labor cost is composed of direct labor and indirect labor.
________ 8. Direct labor cost is recorded by a debit to WIP account.
________ 9. Payroll deductions are based on the gross earnings of the employee (regular earnings plus overtime pay).
________ 10. The amount debited to the WIP account represents the total amount of direct labor (at regular rate) charged to the
different jobs in process.

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