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Accounting For Labor

Labor costs include salaries, overtime pay, bonuses, statutory contributions from employers, and medical benefits for employees. There are two types of labor: direct labor involved in production and indirect labor that supports production. Proper accounting of labor requires timekeeping records to track employees' time and link it to production reports. A payslip explains all components of an employee's compensation for a pay period such as basic pay, statutory deductions, taxes, and net payment.

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Robert Garland
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55 views11 pages

Accounting For Labor

Labor costs include salaries, overtime pay, bonuses, statutory contributions from employers, and medical benefits for employees. There are two types of labor: direct labor involved in production and indirect labor that supports production. Proper accounting of labor requires timekeeping records to track employees' time and link it to production reports. A payslip explains all components of an employee's compensation for a pay period such as basic pay, statutory deductions, taxes, and net payment.

Uploaded by

Robert Garland
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

ACCOUNTING FOR

LABOR
Mañibo, Jaycel Anne M.
BSMA 2101
Labor is the physical or mental effort exerted by
individuals in the creation of a product. This includes all
salaries earned by employees in the factory.
Inclusion to labor costs:
• Basic salaries of workers
• Overtime pay
• Bonuses for exemplary performance
• SSS, PHIC, HDMF dues (employers share)
• Medical benefits and the like
Kinds of Labor
• Direct labor
• Indirect labor
Proper Costing of Labor

TIME TICKET

PRODUCTION
TIME CARD REPORT
Summary of Pay Information

Payroll is a calculation of all employees compensation,


statutory contributions, taxes, deductions , and net
payment for a certain period of time.
PAYSLIP is a document that explains the components of an
individual’s pay for a certain time period. It is a personal version
of a payroll register.
Considerations:
• A standard minimum wage can be paid to be an employee,
but can increase if a worker can produce more units.
• When jobs are rush, overtime pay is normally encountered
to cover the extra hours the worker has rendered.
• Working in a shift different from the normal 8-5:00pm shift is
paid a special premium rate charged to factory overhead.
• Workers are also paid during idle time.
Assume that an employee receives a daily wage rate of
P537. How much is the hourly rate if overtime is done..
Payroll Journal Entries

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