Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please show all work step by step. thank you. You are auditing payroll for the Dowton Dune Technologies company for the year ended October 31,

Please show all work step by step. thank you.
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
You are auditing payroll for the Dowton Dune Technologies company for the year ended October 31, 2016. Included next are amounts from the client's trial balance, along with comparative audited information for the prior yeat. (Click the icon to viow the amounts from the trial balance.) (Click the icon to view the additional information.) Requirements a. Use the final balances for the prior yoor and the information in itoms 1 through 5 to develop an expected value for each account, except sales. (Round to the nearest whole dollar.) b. Cakculate the difference between your expectation and the cllent's recorded amount as a percentage using the formula (expectod value-recorded amount))expected value. (Round to the nearest hundredth percent, %.) (Nose 1: When computing the expected value of factoey houly payrot, you frust 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 10/31/2015 pretiminary salev batance over the 10/31/2015 audited sales balance to dotermine the itspected value for sales commissions on 1031/2016) a. Use the linal balances for the prior year and the infocmation in items 1 through 5 to develop an expected value for each account, except sales. (Round to the dosint.) b. Calculate the difference between your expectation and the client's recorded arnount as a percentage using the formula (expected value-recorded amount)/ex (Round to the nearest hundredth percent, XX% ) Data table increase in the average selling price. The remaining 10% is attributed to an increase in the number of units sold. help . More info 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 three 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 six percent salary increase starting November 1 , 2015. 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 nine percent commission on all sales on which a commission is given. Approximately 90 percent of sales earn sales commission. The other 10 percent are "call-ins," for which no commission is given. Commissions are paid in the month following the month they are earned. You are auditing payroll for the Dowton Dune Technologies company for the year ended October 31, 2016. Included next are amounts from the client's trial balance, along with comparative audited information for the prior yeat. (Click the icon to viow the amounts from the trial balance.) (Click the icon to view the additional information.) Requirements a. Use the final balances for the prior yoor and the information in itoms 1 through 5 to develop an expected value for each account, except sales. (Round to the nearest whole dollar.) b. Cakculate the difference between your expectation and the cllent's recorded amount as a percentage using the formula (expectod value-recorded amount))expected value. (Round to the nearest hundredth percent, %.) (Nose 1: When computing the expected value of factoey houly payrot, you frust 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 10/31/2015 pretiminary salev batance over the 10/31/2015 audited sales balance to dotermine the itspected value for sales commissions on 1031/2016) a. Use the linal balances for the prior year and the infocmation in items 1 through 5 to develop an expected value for each account, except sales. (Round to the dosint.) b. Calculate the difference between your expectation and the client's recorded arnount as a percentage using the formula (expected value-recorded amount)/ex (Round to the nearest hundredth percent, XX% ) Data table increase in the average selling price. The remaining 10% is attributed to an increase in the number of units sold. help . More info 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 three 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 six percent salary increase starting November 1 , 2015. 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 nine percent commission on all sales on which a commission is given. Approximately 90 percent of sales earn sales commission. The other 10 percent are "call-ins," for which no commission is given. Commissions are paid in the month following the month they are earned

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Life Audit

Authors: Michelle Moroney

1st Edition

978-0717184736

More Books

Students also viewed these Accounting questions

Question

Please make a spreadsheet with formulas.

Answered: 1 week ago