ACCT 556 help A Guide to career/uophelp.com ACCT 556 help A Guide to career/uophelp.com | Page 19

2006 WAGE AND SALARY INFORMATION
The accrued wage account will include all direct labor, indirect labor,
sales commissions and salaries, and administrative salaries. All wages
are earned evenly throughout the year, and employees are paid twice
each month. On December 31, 2006, the accrued wages will include
wages representing one full payroll period.
2006 ACCRUED OTHER INFORMATION
This account includes all other cash expenses not included in Account
Payable and Accrued Wages. It is the company's policy to pay all other
expenses during the month following the purchase. These expenses will
be incurred evenly throughout the year. The 20% fringe benefits will be
paid on all wages, salaries, and commissions.
2006 PROPERTY, PLANT AND EQUIPMENT INFORMATION
Property, plant and equipment consist of the following on December 31,
2005:
Property and plant
$750,000
Equipment
1,025,000
Total Property, Plant and Equipment
$1,775,000
Each additional machine that is needed to support the production level
expected during 2006 will cost $30,000 and be depreciated over five
years using the straight-line method. Assume that any equipment
purchases are made on the first day of the January and are operational
throughout the entire year.
No new equipment will be needed for the sales and administrative
departments.