ACCT20200 Study Guide - Midterm Guide: Swatch Internet Time
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Rock Slide is a distributor that assembles power units. Using the material presented in Schedules A and Schedule B:
(1) Determine Rock Slideâs cost of goods sold and the ending inventory using the inventory costing methods of FIFO, LIFO, and Weighted Averages;
(2) Determine Rock Slideâs gross profit (margin) using the inventory costing methods of
FIFO, LIFO and Weighted Averages;
S c h e d u l e A A s s e m b l y o f P o w e r U n i t s Rock Slide
Assembly Activity | Units | Cost/Unit | Total Cost |
Beginning Inventory 1/1/12 | 70 | $105 | $7,350 |
Assembly Units Placed Into Inventory | |||
2/15/12 | 85 | $110 | $9,350 |
4/20/12 | 90 | $112 | $10,080 |
9/18/12 | 65 | $112 | $7,280 |
11/16/12 | 110 | $112 | $12,320 |
12/20/12 | 80 | $120 | $9,600 |
Total Assembled Units Available for Sale- 2012 | 500 | $55,980 |
Schedule B
Sales of Power Units Rock Slide
Sales Activity | Units | Unit Sales Price | Total Sales |
1/15/12 | 60 | $145 | $8,700 |
3/20/12 | 80 | $150 | $12,000 |
5/2/12 | 100 | $150 | $15,000 |
10/8/12 | 60 | $150 | $9,000 |
11/30/12 | 110 | $150 | $16,500 |
12/28/12 | 30 | $175 | $5,250 |
Total 2012 Sales | 440 | $66,450 |
The names of the employees of Cox Security Systems and theirregular salaries are shown in the following payroll register. Notethat Hall and Short are paid monthly on the last payday, while allothers are paid weekly.
In addition to the regular salaries, the company pays an annualbonus based on the amount of earnings for the year. For the currentyear, the bonus amounts to 8% of the annual salary paid to eachemployee. The bonus is to be paid along with the regular salarieson December 26, but the amount of the bonus and the amount of theregular salary will be shown separately on each employee's earningsstatement. Assume that all employees received their regular salaryduring the entire year.
Prepare the payroll for the pay period ending December 26,showing the following for each employee:
Use the wage-bracket method towithhold federal income tax from the regular salaries.
Withhold a flat 25% on the annual bonus.
Total salaries and bonuses are subject to a 2% state income taxand a 1% city income tax.
Enter all amounts as positive numbers. Round your intermediatecalculations and final answers to the nearest cent.
For Period Ending December 26
Employee Name | No. of | Earnings | Deductions | ||||||||
Marital | W/H | (a) | (b) | (c)FICA | (d) | (e) | (f) | (g) | |||
Status | Allowances | Regular | Supp'l. | Total | OASDI | HI | FIT | SIT | CIT | Net Pay | |
Hall, Michael | M | 5 | $5,000.00* | $ | $ | $ | $ | $ | $ | $ | $ |
Short, Joy T. | M | 2 | 2,750.00* | ||||||||
Abbott, Linda | S | 1 | 520.00 | ||||||||
Smith, Joseph | M | 4 | 465.00 | ||||||||
Tols, Sean M. | M | 2 | 380.00 | ||||||||
Gillespie, Michelle | S | 1 | 350.00 | ||||||||
Smart, Jennifer | M | 2 | 575.00 | ||||||||
White, Matthew J. | S | 0 | 425.00 | ||||||||
Totals | $ | $ | $ | $ | $ | $ | $ | $ | $ |
*Monthly
Compute the employer's FICA taxes for the pay period endingDecember 26.
OASDI Taxes | HITaxes | ||
OASDI taxable earnings | $ | HI taxableearnings | $ |
OASDI taxes | $ | HI taxes |