Question
You are auditing payroll for the Drop Line Technologies company for the year ended October 31, 2019. Included next are amounts from the client's
You are auditing payroll for the Drop Line 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. Data table (1) Preliminary (Note 1: When computing the expected value of factory hourly payroll, you must take into consideration bo Note 2: Use the increase in the 10/31/2019 preliminary sales balance over the 10/31/2018 audited sales b Requirement a. (2) Requirement b. [(2)-(1)]/(2) Audited Balance 10/31/2018 Preliminary Balance 10/31/2019 Sales* Balance 10/31/2019 Expected Value 10/31/2019 Difference as a Percentage Executive salaries Executive salaries Factory hourly payroll (see Note 1) Factory supervisors' salaries Office salaries Sales commissions (see Note 2) 592,003 % Factory hourly payroll $ 58,583,900 $ 529,481 10,798,845 66,785,646 592,003 10,859,285 10,859,285 % Factory supervisors' salaries 690,022 759,699 759,699 % Office salaries 2,405,000 2,515,983 2,515,983 % Sales commissions 2,018,149 3,059,893 3,059,893 % *Sales have increased 14% over prior year. 6% percent of that is due to an increase in the average selling price. The remaining 8% is attributed to an increase in the number of units sold. Print Done
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