P7-37 (similar to) Question Help You are auditing payroll for the Dowton Dune 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. FE! (Click the icon to view the amounts from the trial balance.) G 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 3% wage increase and the 12% 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.) Requirement a Data Table More Info Requirement b. |(2) - (1)/(2) (2) Preliminary Balance 10/31/2019 Expected Value 10/31/2019 Difference as a Percentage 90 592,003 Executive salaries Factory hourly payroll (see Note 1) Factory supervisors' salaries 11.697055 90 770.500 96 Office salaries 2,894,585 96 Sales commissions (see Note 2) Audited Preliminary Balance Balance 10/31/2018 10/31/2019 Sales $ 58,583.900 5 68,543,153 Executive salaries 501 948 592,003 Factory hourly payroll 8,371149 11,697,055 Factory supervisors' salaries 689,205 770.600 Office salaries 2,003,912 2,894,585 Sales commissions 2,503 913 2,827 321 Sales have increased over prior vear 596 percent of that is due to an increase in the average setting once. The remaining 12% is attributed to an increase in the number of units solde 2.827,321 96 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 Dowton Dune's products. The increase in sales was due to both an increase in the average selling price of 5 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 3 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. Dowton Dune 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 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 earned. Print Done Enter any number in the edit fields and then click Check Answer Print Done All parts showing Clear All Check Answer You are auditing payroll for the Dowton Dune 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 3% wage increase and the 12% 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.) Requirement a Requirement b. (2) - (1)]/(2) Preliminary Balance 10/31/2019 Expected Value 10/31/2019 Difference as a Percentage Executive salaries 592.003 11,697,055 % Factory hourly payroll (see Note 1) Factory supervisors' salaries 770.600 Office salaries 2.894.585 Sales commissions (see Note 2) 2.827,321 Audited Balance 10/31/2018 Preliminary Balance 10/31/2019 68,543,163 Sales* 58.583,900 $ Executive salaries 501,948 592,003 Factory hourly payroll 11,697,055 Factory supervisors' salaries 689.205 770,600 Office salaries 2,003,912 2,894,585 Sales commissions *2,503,913 2,827,321 *Sales have increased 17% over prior year. 596 percent of that is due to an increase in the average selling price. The remaining 12% 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 Dowton Dune's products. The increase in sales was due to both an increase in the average selling price of 5 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 3 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. Dowton Dune 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 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 earned P7-37 (similar to) Question Help You are auditing payroll for the Dowton Dune 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. FE! (Click the icon to view the amounts from the trial balance.) G 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 3% wage increase and the 12% 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.) Requirement a Data Table More Info Requirement b. |(2) - (1)/(2) (2) Preliminary Balance 10/31/2019 Expected Value 10/31/2019 Difference as a Percentage 90 592,003 Executive salaries Factory hourly payroll (see Note 1) Factory supervisors' salaries 11.697055 90 770.500 96 Office salaries 2,894,585 96 Sales commissions (see Note 2) Audited Preliminary Balance Balance 10/31/2018 10/31/2019 Sales $ 58,583.900 5 68,543,153 Executive salaries 501 948 592,003 Factory hourly payroll 8,371149 11,697,055 Factory supervisors' salaries 689,205 770.600 Office salaries 2,003,912 2,894,585 Sales commissions 2,503 913 2,827 321 Sales have increased over prior vear 596 percent of that is due to an increase in the average setting once. The remaining 12% is attributed to an increase in the number of units solde 2.827,321 96 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 Dowton Dune's products. The increase in sales was due to both an increase in the average selling price of 5 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 3 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. Dowton Dune 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 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 earned. Print Done Enter any number in the edit fields and then click Check Answer Print Done All parts showing Clear All Check Answer You are auditing payroll for the Dowton Dune 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 3% wage increase and the 12% 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.) Requirement a Requirement b. (2) - (1)]/(2) Preliminary Balance 10/31/2019 Expected Value 10/31/2019 Difference as a Percentage Executive salaries 592.003 11,697,055 % Factory hourly payroll (see Note 1) Factory supervisors' salaries 770.600 Office salaries 2.894.585 Sales commissions (see Note 2) 2.827,321 Audited Balance 10/31/2018 Preliminary Balance 10/31/2019 68,543,163 Sales* 58.583,900 $ Executive salaries 501,948 592,003 Factory hourly payroll 11,697,055 Factory supervisors' salaries 689.205 770,600 Office salaries 2,003,912 2,894,585 Sales commissions *2,503,913 2,827,321 *Sales have increased 17% over prior year. 596 percent of that is due to an increase in the average selling price. The remaining 12% 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 Dowton Dune's products. The increase in sales was due to both an increase in the average selling price of 5 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 3 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. Dowton Dune 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 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 earned