Question

Martin Printing pays employees on a weekly basis on Friday for the week ended the previous Friday. Employees’ compensation is earned evenly each day over a 5-day work week. This year, March 31 fell on Tuesday. Payroll costs for the week ended April 3 follow:

Non Factory: Sales $ 28,200 Administrative 34,500 $ 62,700 Factory: Direct labor $ 77,200 Overtime premium 5,300 Indirect labor 45,700 $128,400 $191,100 Excluding payroll taxes, what amount should be accrued to the payroll account for the period ended April 30? a. $51,360 b. $191,100 c. $114,660 d. $76,440

Answer 1

Calculation of amount accrued to payroll account for period ended April 30 is shown below
In this case therefore 2 days payroll would be accrued that is of Monday and Tuesday which would be paid in May
	Total amount	Payroll per day	No of days accrued	Payroll accrued
Sales	$28,200	$5,640	2	$11,280
Administrative	$34,500	$6,900	2	$13,800
Direct labor	$77,200	$15,440	2	$30,880
Overtime premium	$5,300	$1,060	2	$2,120
Indirect labor	$45,900	$9,180	2	$18,360
Payroll accrued	$191,100	$38,220		$76,440
Thus, the total payroll accrued is $76,440