Question

Mason Company has a weekly payroll of $5,000. Wages are paid every Friday for the work performed Monday through Friday of that week. Assuming that the accounting period ends on a Tuesday, what is the amount of Wages Expense that should be recorded on that date (assume same amount of wages expense incurred is paid per day)?

Answer 1

Answer:

$2,000

Explanation:

Given:

Weekly payroll = $5,000

Number of working days for which wages are paid from Monday to Friday = 5

Wages paid per day = $\frac{\textup{Weekly payroll}}{\textup{Number of days}}$

or

Wages paid per day = $\frac{\ \textup{5,000}}{\textup{5}}$

or

Wages paid per day = $1,000

Thus,

from Monday to Tuesday total wages paid

= Wages per day × Number of days

= $1,000 × 2

= $2,000

Hence, the amount of Wages Expense that should be recorded on that date is $2,000