Homework: HW #3 S Score: 0 of 10 pts 2 of 10 (10 complete) HW Score: 90%, 90 of 10 P7-37 (similar to) s Question Help You are auditing payroll for the Harbor Creek Technologies company for the year ended October 31, 2019. Included next are amounts from the client's trial balance, along with comparative audited information for the prior year. E: (Click the icon to view the amounts from the trial balance.) (Click the icon to view the additional information.) Read the requirements. (Note 1: When computing the expected value of factory hourly payroll, you must take into consideration both the 6% wage increase and the 10% increase in the number of units produced and sold. Note 2: Use the increase in the 10/31/2019 preliminary sales balance over the 10/31/2018 audited sales balance to determine the expected value for sales commissions on 10/31/2019.) x Requirement a. Requirement b. Data Table (2) [(2) - (1)]/(2) (1) Preliminary Balance 10/31/2019 Expected Value 10/31/2019 Difference as a Percentage Audited Balance 10/31/2018 Preliminary Balance 10/31/2019 666,049 % 12,019,400 % Sales* $ 49,284,000 $ 55,690,920 Executive salaries Factory hourly payroll (see Note 1) Factory supervisors' salaries Office salaries 840,392 % Executive salaries 530,284 666,049 % 2,694,881 3,399,560 Sales commissions (see Note 2) % Factory hourly payroll 9,284,511 12,019,400 Factory supervisors' salaries 689,205 840,392 Office salaries 1,792,309 2,694,881 Sales commissions 1,958,300 3,399.560 *Sales have increased 13% over prior year. 3% percent of that is due to an increase in the average selling price. The remaining 10% is attributed to an increase in the number of units sold. Enter any number in the edit fields and then click Check Answer. Print Done All parts showing Clear All Check Answer Homework: HW #3 Score: 0 of 10 pts 2 of 10 (10 complete) HW Score: 90%, 90 of X P7-37 (similar to) : Question Help You are auditing payroll for the Harbor Creek Technologies company for the year ended October 31, 2019. Included next are amounts from the client's trial balance, along with comparative audited information for the prior year. (Click the icon to view the amounts from the trial balance.) (Click the icon to view the additional information.) Read the requirements. - % % % (Note 1: When computing the expected value of factory hourly payroll, you must take into consideration both the 6% wage increase and the 10% increase in the number of units produced and sold. Note 2: Use the increase in the 10/31/2019 preliminary sal balance over the 10/31/2018 audited sales balance to determine the expected value for sales commissions on 10/31/2019.) Requirement a. More Info Requirement b. (1) (2) [(2) - (1)]/(2) Preliminary Balance Expected Value Difference as a You have obtained the following information to help you perform preliminary 10/31/2019 10/31/2019 Percentage analytical procedures for the payroll account balances. Executive salaries 666,049 1 There has been a significant increase in the demand for Harbor Creek's products. The increase in sales was due to both an increase in the average Factory hourly payroll (see Note 1) 12,019,400 selling price of 3 percent and an increase in units sold that resulted from the Factory supervisors' salaries 840,392 increased demand and an increased marketing effort. 2,694,881 Office salaries 2. Even though sales volume increased, there was no addition of executives, factory supervisors, or office personnel. Sales commissions (see Note 2) 3,399,560 3. All employees including executives, but excluding commission salespeople, received a 6 percent salary increase starting November 1, 2018. 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. Harbor Creek does not permit overtime. 5. Commission salespeople receive a 9 percent commission on all sales on which a commission is given. Approximately 80 percent of sales earn sales Enter any number in the edit fields and then click Check Answer. commission. The other 20 percent are "call-ins," for which no commission is given. Commissions are paid in the month following the month they are All parts showing Clear All earned :k Answer % %
