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Q.5 Employees' earnings using hourly and piece-rate methods: The payroll records of Torero Machining Company show the following information for the week ended April 17: Hours Production Income Employee Classification Worked (Units) Rate Tax W/held Brown, D. Direct 42 $18.00/hr $ 80 Dorr, M. Direct 48 $17.60/hr 84 Ginty, D. Direct 39 2,000 $0.44/piece 110 Jackson, D. Direct 40 1,800 $0.44/piece 100 Jones, R. Indirect 40 $800/wk 100 Lewis, C. Indirect 50 $1,600/wk 240 Pomare, G. Indirect 40 $1,400/wk 120 Hourly workers are paid time-and-a-half for overtime. Use the following tax rates: FICAEmployer and employee, 8% of the first $100,000 of earnings per employee per calendar year. State unemployment 4% of the first $8,000 of earnings per employee per calendar year. Federal unemployment1% of the first $8,000 of earnings per employee, per calendar year. Federal income tax withholding10% of each employee's gross earnings, unless otherwise stated. Required: a. Determine the net earnings of each employee. b. Prepare the journal entries for the following: 1. Recording the payroll 2. Paying the payroll 3. Distributing the payroll. (Assume that overtime premium will be distributed to all jobs worked on during the period.) 4. Recording the employer's payroll taxes. (Assume that none of the employees has achieved the maximum wage bases for FICA and unemployment taxes.)

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