Make a journal entry at the end of each month to record

Reference no: EM132741302

Thomas Inc. a manufacturer of plumbing stands for water and sewers, pays an employee bonus based on the production recorded in each calendar quarter. Normal production is set at a rate of 240,000 units per quarter. A bonus of $ 0.50 per unit is paid for any units outside of normal output for each quarter.

The bonus distribution is based on the following points:

participating employees Allowed Values for Each Employee

1 Factory manager 250
2 Production engineer 200
5 Factory supervisor 200
1 Warehouse keeper 100
5 Factory office clerk 10
150 Factory worker 20

Employee income is not penalized for any month in which output; is below the monthly average of normal production per quarter. If the output is below the monthly average, the shortfall is taken from the excess of the following month before bonuses are earned and paid to employees. At the end of March, cumulative actual production totaled 270,000 units for the quarter.

Requested:

Problem 1. Calculate the bonus amount owed to each group of employees. Round all calculations to three decimal places.

Problem 2. Make a journal entry at the end of each month to record the bonus liability based on the following production figures: January, 75,000 units; February, 94,000 units; March, 101,000 units. All bonuses will be charged to the Factory Overhead Controller.

Reference no: EM132741302

Questions Cloud

How much must jack deposit at the end of each year : How much must Jack deposit at the end of each year to accumulate the required lump-sum amount to be given to the car club at the relevant time

How is the gram stain used to classify bacteria : How is the Gram stain used to classify bacteria? How do antibiotics inhibit the growth of bacteria? Explain how carriers play an important role in the.

Differentiate the periodic and perpetual tracking systems : How to Control Your Inventory, illustrate to differentiate the periodic and perpetual tracking systems.

Explain various competitive strategies in business : Explain various competitive strategies in business, with examples.

Make a journal entry at the end of each month to record : Make a journal entry at the end of each month to record the bonus liability based on the following production figures: January, 75,000 units

Higher level of cross cultural awareness and competence : Why is it important for the business manager to develop a higher level of cross cultural awareness and competence?

Explain the responsibility of hr leadership : Post cohesive and scholarly response in APA format based on and supported by your required readings and research this week that addresses the following.

Estimate the cost of the inventory destroyed : The merchandise inventory was destroyed by fire on December 31. Jan. 1 Inventory $350,000. Estimate the cost of the inventory destroyed

Find what is the required return for stock : What is the required return for stock if the market return is 8%, the risk free rate is 1% and the beta for the stock is 1.2? Provide the calculation.

User Account

All Pages