Payroll-Related Expenses
Shown Below Is a Summary of the Annual

question 90

Essay

Payroll-related expenses
Shown below is a summary of the annual payroll data of Revere Ironworks:
(d) How were the costs of postretirement benefits determined? Which of these amounts results in a liability to Revere Ironworks, and when will this liability be paid? Will the amount of the payments be more or less than the amount now shown as a liability? Explain.
$$\begin{array} { | l | r | r | } \hline \text { Wages and salaried expense (gross pay) } & & \$ 1,225,000 \\\hline \text { Amounts withheld form employee's pay: } & & \\\hline \text { Income taxes } & \$ 65,000 & \\\hline \text { Social Security and Medicare } & 50,000 & 115,000 \\\hline \text { Payroll taxes expense: } & & \\\hline \text { Social Security and Medicare } & \$ 50,000 & \\\hline \text { Unemployment taxes } & 12,000 & 62,000 \\\hline \text { Workers' compensation premiums } & & 45,000 \\\hline \text { Group health insurance premiums (paid by employer) } & & 106,000 \\\hline \begin{array} { l } \text { Contributions to employees pension plan (paid by } \\\text { employer and fully funded) }\end{array} & & 45,000 \\\hline \text { Cost of other postretirement benefits: } & & \\\hline \text { Funded } & \$ 20,000 & \\\hline \text { Unfunded } & 35,000 & 55,000 \\\hline & & \\\hline\end{array}$$ (a) Compute Revere's total payroll-related expense for the year.
$\$$ ___________
(b) Compute the company's cash outlays during the year for payroll-related expenses (assume short-term obligations such as insurance premiums and payroll taxes have been paid.)
$\$$ __________
(c) Compute the annual take-home pay of Revere's employees.
$\$$ __________

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Definitions:

Bill Of Material

A comprehensive list detailing the raw materials, parts, and components, along with the quantities of each, needed to manufacture a product.

Top Level

Top Level typically refers to the highest level of hierarchy or authority within an organization or system, often involving strategic decision-making responsibilities.

Dependent Demand

Demand for components or raw materials that is directly tied to the production schedules of finished goods.

Bill Of Material

An exhaustive catalog of the basic materials, elements, and guidelines for assembling, producing, or mending a product or service.