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Question - ZMZM Company's payroll for December is as follows: factory, RM320,000; sales, RM88,000; and administrative, RM26,000. The Social Security rate is 7% on an employee's wages. Income tax withheld amounts to RM54,000 for factory, RM9,000 for sales, and RM5,000 for administrative.
Required -
(a) Prepare a schedule showing the employer's total cost of salaries and wages for December for each of the functions for factory, sales and administrative.
(b) Prepare the journal entries to record the factory, sales, and administrative payrolls including the employer's payroll taxes for each of the functional departments.
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