Question

On January 1, 2018, G Corporation agreed to grant all its employees two weeks paid vacation each year, with the stipulation that vacations earned each year can be taken the following year. For the year ended December 31, 2018, G's employees each earned an average of $800 per week. A total of 500 vacation weeks earned in 2018 were not taken during 2018. Wage rates for employees rose by an average of 5 percent by the time vacations actually were taken in 2019. What is the amount of G's 2019 wages expense related to 2018 vacation time

Answer 1

Answer: $20,000

Step-by-step explanation:

Wages expenses are the expenses that a company incurs for the payment of wages to its workers.

The amount of G's 2019 wages expense related to 2018 vacation time will be calculated as:

= Wage rate × Percentage Increase × The number of vacation weeks

= $800 × 5% × 500

= $800 × 0.05 × 500

= $20,000