McLoyd Company completed the salaries and wages payroll for March. The payroll provided the following details: Salaries and wages earned$570,000 Employee income taxes withheld 52,725 FICA taxes withheld 40,755 Unemployment taxes 3,965 Required:1. Considering both employee and employer payroll taxes, use the preceding information to calculate the total labor cost for the company for March.2, & 3. Prepare the journal entry to record the payroll for March, including employee deductions (but excluding employer payroll taxes) and record employer’s FICA taxes and unemployment taxes. Employees were paid in March but amounts withheld were not yet remitted.

The total wages along with payroll taxes and cost of benefits paid by an employee to his or her…

Answered: McLoyd Company completed the salaries…

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter3: Accounting For Labor

Section: Chapter Questions

Problem 8P

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McLoyd Company completed the salaries and wages payroll for March. The payroll provided the following details:


Salaries and wages earned	$	570,000
Employee income taxes withheld		52,725
FICA taxes withheld		40,755
Unemployment taxes		3,965

Required:

1. Considering both employee and employer payroll taxes, use the preceding information to calculate the total labor cost for the company for March.
2, & 3. Prepare the journal entry to record the payroll for March, including employee deductions (but excluding employer payroll taxes) and record employer’s FICA taxes and unemployment taxes. Employees were paid in March but amounts withheld were not yet remitted.

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