You are auditing payroll for the Morehead 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.
You are auditing payrol for the Morehead 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 increase in the number of units produced and sold Notes 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 [/2) (1/2) Preliminary Balance Expected Value Difference as a 10/31/2015 10/31/2015 Percentage Executive salaries 615,970 Factory hourly payroll (see Note 1) 11,476,319 Factory supervisors' salaries 810,588 Enter any number in the edit fields and then continue to the next question You are auditing payroll for the Morchead Technologies company for the year ended October 31, 2019. Included next are amounts from the clients trial balance, along with comparative diled information for the prior year Click the icon to view the amounts from the trial balance) (Cick the icon to view the additional information) Read the requirements Requirement a Requirement b. (2 1/2) - (1/2) Preliminary Balance Expected Value Difference as a 10/31/2019 10/31/2019 Percentage Executive salaries 615,970 Factory hourly payroll (see Note 1) 11.476,310 Factory supervisors' salaries 810.580 Office salaries 2.056 302 Sales commissions (see Note 2) 2.367.962 Data Table More Info - X You are the prior (Clic (Clic Read the Audited Preliminary Balance Balance 10/31/2010 10/01/2019 Sales $ 51,316.2345 57474182 Executive salaries 546,310 615 970 Factory hourly payroll 10.038 877 11.475 319 Factory supervisors' salaries 785.825 8105 Office salaries 1902 2055 302 Sales commissions 2018.189 2.367 962 *Sales have increased 12 over prior year 4 percent of this due to an increase in the average selling price. The reman sambuted to an increase in the number of units 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 Morehead's products The increase in sales was due to both an increase in the average selling price of 4 percent and an increase in un 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 create starting November 1, 2018 Commission alespeople receive the increased compensation through the increase in es The increased umber of factory outly employees was accomplished by recalling employees that had been they receive the same wagens gereeds open overtime 6 Commission salespeople receive a percent commission on all sales on which acon Army percent of a cama Executive Factory Factory Offices Sales col Print Done Part Done Enter any Data Table More Info - X pn for You are the prior FR (Cid (Cid Read the Audited Preliminary Balance Balance 10/31/2018 10/31/2019 Sales $ 51,316.2345 57.474,182 Executive salaries 546,940 615 970 Factory hourly payroll 10.038 877 11.476 319 Factory supervisors' salaries 785.825 810.588 Office salaries 1.990.296 2.056 302 Sales commissions 2018. 149 2.367.962 Sales have increased 12% over prior year 4 percent of that is due to an increase in the average selling price. The remaining is attributed to an increase in the number of units sold 1 There has been a significant increase in the demand for Morehead's products The increase in sales was due to both an increase in the average ng price of 4 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. Morehead does not permit overtime 5. Commission salespeople receive a 5 percent commission on alles on which a commission is given Approximately 75 percent of sales eam sales commission. The other 25 percentare cains for which no commission is given Commissions are paid in the month following the month they are earned Executive Factory Factory Office a Sales co Print Jone Print Done Enter any Save for Later
