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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
The total wages and salaries earned by all employees of Cutler Manufacturing Company during the month of March, as shown in the labor cost summary and the schedule of fixed administrative and sales salaries, are classified as follows:
Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 625,125
Indirect labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162,120
Administrative salaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140,200
Sales salaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172,500
Total wages earned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,099,945
a. Prepare a journal entry to distribute the wages earned during March.
b. What is the total amount of payroll taxes that will be imposed on the employer for the payroll, assuming that two administrative employees with combined earnings this period of $3,000 have exceeded $8,000 in earnings prior to the period?
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