Reference no: EM132628871

You are the cost accountant of Chinangunga Ltd and have been asked to prepare the wages control account for the company in order to determine the net deductions for the 20 employees of the company working in a factory. The following information is extracted from a weekly payroll for the 20 employees:

(i) 15 employees are directly involved with the work done at the factory while 5 of them are support staff.

(ii) Employees are paid Tshs. 10,500 per hour and were paid for the 8 hours worked during the first week of December 2016 for 5 days.

(iii) The employees worked 2 hours per day during the first week as overtime and were paid at time and half.

(iv) Employees received risk allowance of Tshs. 250,000 each per week.

(v) Sick pay was paid to the factory workers totaling Tshs. 2,300,000 while support staff received Tshs. 1,100,000.

(vi) Total idle time was paid amounting to Tshs. 4,050,000

(vii) It was established that the factory workers' net wages was Tshs. 14,571,875 while the support staff received Tshs. 4, 428, 125.00

Required:

Problem 1: Prepare the wages control account for the first week of December 2016 to determine the total deductions made from the gross wages (show workings)