Question

Merando Industries employs a five-day workweek and a September 30 year-end. Normal weekly wages amount to $36,000. If September 30 ends on a Wednesday, what is the appropriate journal entry at fiscal year-end?

Answer 1

Number of working days = 5

Wednesday = 3rd day

Entry at fiscal year-end = Week wage * 3/5

= 36000*3/5

= 10800/5

= $21,600

The answer is %21,600.