Audited Balance 10/31/2018 Preliminary Balance 10/31/2019 Sales* $58,583,900 $66,199,807 Executive salaries 530,284 650,381 Factory hourly payroll 10,399,587 11,597,899 Factory supervisors' salaries 809,654 829,583 Office salaries 1,948,821 2,404,933 Sales commissions 2,798,321 3,399,560 *Sales have increased 13% over prior year. 2% percent of that is due to an increase in the average selling price. The remaining 11% is attributed to an increase in the number of units sold. You have obtained the following information to help you perform preliminary analytical procedures for the payroll account balances.

1. There has been a significant increase in the demand for 's products. The increase in sales was due to both an increase in the average selling price of 2 percent and an increase in units sold that resulted from the increased demand and an increased marketing effort.

2. Even though sales volume increased, there was no addition of executives, factory supervisors, or office personnel.

3. All employees including executives, but excluding commission salespeople, received a 4 percent salary increase starting November 1, . Commission salespeople receive their increased compensation through the increase in sales.

4. The increased number of factory hourly employees was accomplished by recalling employees that had been laid off. They receive the same wage rate as existing employees. does not permit overtime.

5. Commission salespeople receive a 3 percent commission on all sales on which a commission is given. Approximately percent of sales earn sales commission. The other 60 percent are "call-ins," for which no commission is given. Commissions are paid in the month following the month they are earned. pop-up content ends