Question

1. Kipley Company is a small manufacturing firm located in Pittsburgh, Pennsylvania. The company has a workforce of both hourly and salaried employees. Each employee is paid for hours actually worked during each week, with the time worked being recorded in quarter-hour increments. The standard workweek consists of 40 hours, with all employees being paid time and one-half for any hours worked beyond the 40 regular hours.

   Wages are paid every Friday, with one week's pay being held back by the company. Assume that the first payday for Kipley Company is January 14 for the workweek ending January 8 (Saturday).

   You are being asked to complete Kipley's Payroll Register for the pay period ending January 8, 20--. Ms. Glenda B. Robey prepares the Time Clerk's Report for each pay period. This along with the Hourly Wage / Salary Report is provided.

   Requirement:

   1. Record the regular hours and the overtime hours worked for each employee, using the time clerk's report as your reference.
   2. Complete the Regular Earnings columns (Rate per Hour and Amount) for hourly employees. For only hourly employees that worked overtime, complete the Overtime Earnings columns (Rate per Hour and Amount).
      For salaried workers, complete the Regular Earnings column and show the hourly overtime rate and earnings only if overtime was worked.
   3. Record the Total Earnings for each employee by adding the Regular Earnings and the Overtime Earnings.

   Hourly Wage / Salary Report

   Hourly Wage / Salary Report

   Kipley's Hourly Wage / Salary Report is provided below, listing each employee's assigned time card number as well as their individual hourly rate or salary.

   Time Card No.	Employee Name	Hourly Wage or Salary
   11	Fran M. Carson	$17.50		per hour
   12	William A. Wilson	17.25		per hour
   13	Harry T. Utley	18.10		per hour
   21	Lawrence R. Fife	17.90		per hour
   22	Lucy K. Smith	19.75		per hour
   31	Gretchen R. Fay	515		per week
   32	Glenda B. Robey	2,700		per month
   33	Thomas K. Schork	3,350		per month
   51	Barbara T. Hardy	2,510		per month
   99	Carson C. Kipley	52,000		per year

   Time Clerk's Report

   Time Clerk's Report

   Ms. Glenda B. Robey prepares the time clerk's report for each pay period. Her report for the first week of operations is given below.

   Note: All employees, except for Carson Kipley, are paid for hours worked beyond 40 at one and one-half times their regular hourly rate of pay.

   TIME CLERK'S REPORT NO. 1 For Period Ending January 8, 20-- Employee Time Record Time Worked* Time Lost M T W T F S 11 Fran M. Carson 8 8 8 8 8 – 40 12 William A. Wilson 8 8 8 8 8 8 48 13 Harry T. Utley 8 5½ 8 8 8 – 37½ 2½ hrs. tardy 21 Lawrence R. Fife 10 10 8 8 10 – 46 22 Lucy K. Smith 8 8 8 8 8 – 40 31 Gretchen R. Fay 8 8 8 8 8 1¼ 41¼ 32 Glenda B. Robey 8 8 8 8 8 – 40 33 Thomas K. Schork 8 8 8 8 8 – 40 51 Barbara T. Hardy 8 8 8 8 8 4 44 99 Carson C. Kipley 8 8 8 8 8 – 40

   Payroll Register

   Payroll Register

   This is the first task to completing Kipley Company's payroll register. Complete the steps outlined below:

   1. Record the regular hours and the overtime hours worked for each employee, using the time clerk's report as your reference.
   2. Complete the Regular Earnings columns (Rate per Hour and Amount) for hourly employees. For only hourly employees that worked overtime, complete the Overtime Earnings columns (Rate per Hour and Amount).
      For salaried workers, complete the Regular Earnings column and show the hourly overtime rate and earnings only if overtime was worked.
   3. Record the Total Earnings for each employee by adding the Regular Earnings and the Overtime Earnings.

   If an amount box does not require an entry, leave it blank or enter "0". If required, round your intermediate calculations to the nearest cent and use the rounded amounts in subsequent computations. Round fraction values to the nearest two decimal places, e.g. 1 1/2 to 1.50.

   KIPLEY COMPANY, INC. Employee Payroll Register For Period Ending January 8, 20 --
   				Regular Earnings			Overtime Earnings
   Time Card No.	Name	Marital Status	No.W/H Allow.	Hours Worked	Rate per Hour	Amount	Hours Worked	Rate per Hour	Amount	Total Earnings
   11	Carson, F.	S	1		$	$		$	$	$
   12	Wilson, W.	S	0
   13	Utley, H.	M	2
   21	Fife, L.	M	4
   22	Smith, L.	S	2
   31	Fay, G.	M	3		………
   32	Robey, G.	M	6		………
   33	Schork, T.	S	1		………
   51	Hardy, B.	M	5		………
   99	Kipley, C.	M	7		………
   Totals						$	………	………	$	$

Check My Work

Answer 1

Calculating no of normal working hours per month.

there will be 4 weeks in a month. So, no of working hours in a month = 160 (40*4)

Calculating no of normal working hours in a year

there will be 52 weeks in a year so, no of working hours in a year = 40*4*52 = 2080.

W.N1:Calculating normal hourly rate and overtime hourly rate for all employees

Employee Name	hourly wage/ salary (A)	no of hours (B)	Normal Hourly rate(C) = (A)/(B)	Overtime hourly rate ( C)*1.5
Carson,F	$17.50	1.0	$17.50	$26.25
Wilson,W	$17.25	1.0	$17.25	$25.88
Utley,H.	$18.10	1.0	$18.10	$27.15
Fife,L.	$17.90	1.0	$17.90	$26.85
Smith,L.	$19.75	1.0	$19.75	$29.63
Fay G	$515 per week	40.0	$12.88	$19.31
Robey,G.	$2700 per month	160.0	$16.88	$25.31
Schork,T.	$3350 per month	160.0	$20.94	$31.41
Hardy,B.	$2510 per month	160.0	$15.69	$23.53
Kipley,C.	$52,000 per Year	2080.0	$25.00	……..

Calculation of overtime hours (Hours worked in excess of 40 hours)

Over time hours worked = (total hours worked - 40) , if total hours worked is more than 40, other wise zero.

Employee	hours worked per week	overtime hours
Carson,F	40	0
Wilson,W	48	8
Utley,H.	37.5	0
Fife,L.	46	6
Smith,L.	40	0
Fay G	41.25	1.25
Robey,G.	40	0
Schork,T.	40	0
Hardy,B.	44	4
Kipley,C.	40	0

Calculation of normal and overtime earnings for all employees

Time card no	Name	Martial Status	Regular Earnings			Overtime Earnings
			hours worked	Rate per hour(From W.N 1)	Amount	hours worked	Rate per hour (From W.N1)	Amount
11	Carson,F	S	40	$17.50	$700.00	0	$26.25	$0.00
12	Wilson,W	S	40	$17.25	$690.00	8	$25.88	$207.00
13	Utley,H.	M	37.5	$18.10	$678.75	0	$27.15	$0.00
21	Fife,L.	M	40	$17.90	$716.00	6	$26.85	$161.10
22	Smith,L.	S	40	$19.75	$790.00	0	$29.63	$0.00
31	Fay G	M	40	………	$515.00	1.25	$19.31	$24.14
32	Robey,G.	M	40	………	$675.00	0	$25.31	$0.00
33	Schork,T.	S	40	………	$837.50	0	$31.41	$0.00
51	Hardy,B.	M	40	………	$627.50	4	$23.53	$94.13
99	Kipley,C.	M	40	………	$250.00	0	……..	$0.00
Totals					$6,479.75	…………	………….	$486.37