MULTPLE CHOICES - THEORETICAL

1 C
2 B
3 A
4 A
5 A
6 A
7 A
8 A
9 D
10 A

Problem 5-2
1
Problem 5-1

1 Factory Payroll 480,000.00

Withholding Tax Payable (480000 X 1%) 4,800.00
SSS Contribution Payable (480000x10%x40%) 19,200.00
Philhealth contribution payable (480000x2%x50%) 4,800.00
PAG-IBIG Contribution Payable (480000x3%x50%) 7,200.00
Accrued Payroll 444,000.00

2 Sales Salaries Expense 72,000.00

Office Salaries Expense 54,000.00
Work In Process 288,000.00
Manufacturing Overhead Control 66,000.00
Factory Payroll 480,000.00

Payroll Taxes - Sales 7,560.00

Payroll Taxes - Administrative 5,670.00
Manufacturing Overhead Control 37,170.00
SSS Contribution Payable (480000x10%x60%) 28,800.00
ECC Payable (480000 X 2%) 9,600.00
Philhealth contribution payable (480000x2%x50%) 4,800.00
PAG-IBIG Contribution Payable (480000x3%x50%) 7,200.00
 15.00% x 50,400 = 7,560.00 SALES
11.25% x 50,400 = 5,670.00 OFFICE
60.00% x 50,400 = 30,240.00 DL
13.75% x 50,400 = 6,930.00 IL

50400

s
Problem 5-2

1 Factory Payroll 18,000.00

Withholding Tax Payable (given by the problem) 2,400.00
SSS Contribution Payable (18000x10%x40%) 720.00
Philhealth contribution payable (18000x2%x50%) 180.00
PAG-IBIG Contribution Payable (18000x3%x50%) 270.00
Accrued Payroll 14,430.00

Administrative Expense 18,000.00

Factory Payroll 18,000.00

Payroll Taxes - Administrative 1,890.00

SSS Contribution Payable (18000x10%x60%) 1,080.00
ECC Payable (18000 x 2%) 360.00
Philhealth contribution payable (18000x2%x50%) 180.00
PAG-IBIG Contribution Payable (18000x3%x50%) 270.00
Problem 5-3

Regular Earnings = 48 hours x P 200 9,600.00

OT Premium = 8 hours (excess hours) x P 100 (excess rate) 800.00
GROSS EARNINGS 10,400.00

1 OVERTIME PREMIUM IS CHARGED TO JOB

Work In Process 10,400.00

Factory Payroll 10,400.00

2 OVERTIME PREMIUM IS NOT CHARGED TO JOB

Work In Process 9,600.00

MOC 800.00
Factory Payroll 10,400.00
Charged to job Not charged to specific job

WIP MOC
 9,600.00
800.00
10,400.00
Problem 5-4

Factory Payroll 27,600.00

Accrued Payroll 27,600.00

Work In Process 27,600.00

Factory Payroll 27,600.00

Manufacturing Overhead Control 3,600.00

Estimated Liability for Bonus 2,400.00
Estimated Liability for Vacation 1,200.00

Bonus P 27,600 / 11.5 2,400.00

Vacation P 13,800 / 11.5 1,200.00
Problem 5-5

MOC 7,104.00
Estimated Liability for Vacation 2,368.00 (Applicable to one week only)
Estimated Liability for Bonus 4,736.00 (Applicable to one week only)

Vacation ( P 200 + 1280) x 40 hours x 2weeks = 118,400 / 50 weeks = P 2,368 per week

Bonus ( P 200 + P 1280 ) x 40 hours x 4weeks = 236,800 / 50weeks = P 4,736 per week
Problem 5-6

1 Factory Payroll 112,000.00

SSS Contribution Payable (given by the problem) 4,920.00
Philhealth Payable (112000 x 1.25%) 1,400.00
PAG-IBIG Payable (112000 x 2%) 2,240.00
Withholding tax payable 9,488.00
Accrued Payroll 93,952.00

2 Accrued Payroll 93,952.00

Cash 93,952.00

3 MOC (10360 x 60%) 6,216

Marketing Expense (10360 x 20%) 2,072
Gen and Adm Expense (10360 x 20%) 2,072
SSS Contribution Payable (112000 x 5%) 5,600.00
Philhealth Payable (112000 x 1.25%) 1,400.00
PAG-IBIG Payable (112000 x 2%) 2,240.00
ECC Payable (112000 x 1%) 1,120.00

4 SSS Contribution Payable (4920+5600+11760) 22,280.00

Philhealth Payable (1400 + 1400 + 1160) 3,960.00
PAG-IBIG Payable (2240+2240+2432) 6,912.00
ECC Payable 1,120.00
Withhodling Tax Payable (9488+34000) 43,488.00
Cash 77,760.00
Problem 5-7
Employee Regular Earnings Overtime Premium
SY 1,872.00 -
LIM 1,702.00 (4hours x P37) + (2hrs x 18.5 185.00
ONG 1,453.60 (6hours x P15.80) 94.80
TAO 1,188.00 (5hours x P 13.20) 66.00

per hour Sunday

SY 46.8 (40hours x 46.8)
LIM 37 74.00 (40hours x P37) + (4hours x P74) + (2hours x P55.5)
ONG 31.6 (40hours x P31.6) + (6hours x P47.4)
TAO 26.4 (40hours x P 26.4) + (6hours x P 39.6)

Problem 5-3

Regular Pay = 48 hours x P 2 9,600.00 Regular Pay = 40 hours x P 8,000.00

OT Premium = 8 hours x P 100 800.00 OT Premium = 8 hours x P 3 2,400.00
10,400.00 10,400.00

1 Work In Process
10,400.00

2 Work In Process
MOC
10,400.00

Problem 5-4
Factory Payroll
Accrued Payroll 27,600.00
Work In Process
Factory Payroll 27,600.00

MOC
Estimated Liability f 2,400.00
Estimated Liability f 1,200.00

Bonus 27600 / 11.5

Vacation 13800 / 11.5

Problem 5-5

MOC
Estimated Liability f 4,736.00
Estimated Liability f 2,368.00

Bonus ( P 200 + P 1280 ) x 40 hours x 4weeks = 236,800 / 50weeks = 4736

Vacation ( P 200 + 1280) x 40 hours x 2weeks = 118,400 / 50 weeks = 2368
800000
10000
80
12000
960000
vertime Premium

4) + (2hours x P55.5)
Problem 5-7
( Actual hours x regular rate) ( Excess hours x excess rate)
Employee Regular rate Total Hours Regular Earnings Overtime Premium Gross Earnings
J. SY 46.80 40 (40hours x P46.8) 1,872.00 - - 1,872.00
F. LIM 37.00 46 (46hours x P37.00) 1,702.00 (4hours x P37) + (2hrs x 18.5) 185.00 1,887.00
H. ONG 31.60 46 (46hours x P31.60) 1,453.60 (6hours x P15.80) 94.80 1,548.40
W. TAO 26.40 45 (45hours x P26.40) 1,188.00 (5hours x P 13.20) 66.00 1,254.00

40 hrs x 26.4 1,056.00

wrong 5 hrs x 39.6 198.00
1,254.00

45 hrs x 26.4 1,188.00

correct 5 hrs x 13.2 66.00
1,254.00
Problem 5-9
(Regular Earnings + OTP)
Employee Regular rateTotal Hours Regular Earnings Overtime Premium Gross Earnings Income Tax (15%)
Reyes 14.00 40 (40 hrs x P 14) 560.00 - - 560.00 84.00
Santos 26.00 46 (46 hrs x P 26) 1,196.00 (6hours x P13) 78.00 1,274.00 191.10
Manalo 17.50 43 (43 hrs x P 17.5) 752.50 (3hours x P8.75) 26.25 778.75 116.81
Cruz 10.30 43 (43 hrs x P 10.3) 442.90 (3hours x P5.15) 15.45 458.35 68.75
Sanchez 8.50 45 (45 hrs x P 8.5) 382.50 (5hours x P4.25) 21.25 403.75 60.56
Webb 23.00 40 (40 hrs x P 23) 920.00 - - 920.00 138.00
4,394.85 659.23

Entry: Factory Payroll

Withholding Tax Payable
SSS
Philhealth
PAG-IBIG
Union Dues
Accrued Payroll
 ( Gross Earnings less deductions)
SSS (6.2%) Philhealth (1.5%) PAG-IBIG (1.5%) Union NET PAY
34.72 8.40 8.40 10.00 414.48
78.99 19.11 19.11 10.00 955.69
48.28 11.68 11.68 10.00 580.29
28.42 6.88 6.88 10.00 337.43
25.03 6.06 6.06 10.00 296.04
57.04 13.80 13.80 10.00 687.36
272.48 65.92 65.92 60.00 3,271.30

4,394.85
ing Tax Payable 659.23
272.48
65.92
65.92
60.00
3,271.30
Problem 5-10

1 Factory Payroll 658,150.00

SSS Contribution Payable 40,805.00
Philhealth contribution payable 9,872.00
Withholding Taxes Payable 98,723.00
PAG-IBIG Payable 9,800.00
Accrued Payroll 498,950.00

2 Accrued Payroll 498,950.00

Vouchers Payable 498,950.00

3 Vouchers Payable 498,950.00

Cash 498,950.00

Entry to record remittance of contributions:

SSS Contribution Payable 40,805.00

Philhealth contribution payable 9,872.00
Withholding Taxes Payable 98,723.00
PAG-IBIG Payable 9,800.00
Cash 159,200.00
Problem 5-13

15-Sep Factory Payroll 32,500.00

SSS Contribution Payable 2,015.00
Philhealth contribution payable 487.00
PAG-IBIG 487.00
Withholding Taxes 4,900.00
Accrued Payroll 24,611.00

15-Sep Accrued Payroll 24,611.00

Vouchers Payable 24,611.00

15-Sep Vouchers Payable 24,611.00

Cash 24,611.00

30-Sep Factory Payroll 83,200.00

SSS Contribution Payable 2,058.00
Philhealth contribution payable 498.00
Withholding Taxes 5,120.00
PAG-IBIG 498.00
Accrued Payroll 75,026.00

30-Sep Accrued Payroll 75,026.00

Vouchers Payable 75,026.00

30-Sep Vouchers Payable 75,026.00

Cash 75,026.00

30-Sep Work In process 46,240.00

MOC 19,460.00
Administrative Expense 50,000.00
Factory payroll 115,700.00

30-Sep MOC 4,695.00

Administrative Expense 3,542.00
SSS Contribution Payable 4,073.00
Philhealth contribution payable 985.00
ECC 1,600.00
PAG-IBIG 1,579.00
 s

40% x 8237 3,294.80

17% x 8237 1,400.29
43% x 8237 3,541.91
1 Regular Pay (46 hours x P 45) 2,070.00
Overtime Premiun (6hours x P 22.5) 135.00
Gross Earnings 2,205.00

2 Regular Pay (42 hours x P 40) 1,680.00

Overtime Premium (2hours x P 20) 40.00
Gross Earnings 1,720.00
Deductions: (7 % P 1,720) (120.40)
Net Pay 1,599.60

3 Regular Pay (50 hours x P 180) 9,000 WIP

Overtime Premium (10 hours x P 90) 900 WIP

4 Regular Pay (50 hours x P 180) 9,000 WIP

Overtime Premium (10 hours x P 90) 900 MOC

5-7 MOC 2,016.00

Estimated Liability for Bonus 1,344.00
Estimated Liability for Vacation 672.00

Bonus ( P 100 + P 320 ) x 40 hours x 4weeks = 67,200 / 50weeks = P 1,344 per week
Vacation ( P 100 + 320) x 40 hours x 2weeks = 33,600 / 50 weeks = P 672 per week

8 Gross Earnings 4,560.00 (R+O)

less: Regular Pay (80 hours x P 48) 3,840.00
Overtime Pay 720.00
/ Rate (P48 x 150%) P72
Number of OT hours 10 hrs

> Regular Earnings (90 hours x P 48) P 4320 WIP

OT Premium (10 hours x P 24) 240 MOC

9 OT Premium 240.00
Other benfits 1,092.80
1,332.80

10 Bonus P 14,904 / 11.5 1,296.00

Vacation 7452 / 11.5 648.00
Pension 2070 / 11.5 180.00
2,124.00
11 7 hours excess x P 20 excess = P 140.00