Reference no: EM132633762

Eight Factory workers and a supervisor comprise a team in the Blending Department. The supervisor earns P200 per hour and the combined hourly direct wages of the eight workers is P1,280. Each employee is entitled to a two-week paid vacation and a bonus equal to four weeks' wages per year. Vacation pay and bonuses are treated as indirect cost and are accrued over 50-week work year. A provision in the collective bargaining agreement does not allow these employees to work in excess of 40 hours per week.

Required:

Question 1: The journal entry to record the vacation and bonus pay applicable to one week's production.