Western Industries pays employees on a weekly basis on Tuesday for the week ended the previous Friday. Employees' compensation is earned evenly each day over a 5-day work week. This year, April 30 fell on Thursday. Payroll costs for the week ended May 1 follow: Excluding payroll taxes, what amount should be accrued to the payroll account for the period ended April 30?

Question

Western Industries pays employees on a weekly basis on Tuesday for the week ended the previous Friday. Employees' compensation is earned evenly each day over a 5-day work week. This year, April 30 fell on Thursday. Payroll costs for the week ended May 1 follow:  Excluding payroll taxes, what amount should be accrued to the payroll account for the period ended April 30?

Quizplus · Accepted Answer

If April 30 is Thursday, four days of the payroll fall in April and one in May.
$57,500 / 5 days = $11,500 per day x 4 days = $46,000

Western Industries Pays Employees on a Weekly Basis on Tuesday