Auditing And Assurance Services
17th Edition
ISBN: 9780134897431
Author: ARENS, Alvin A.
Publisher: PEARSON
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Chapter 21, Problem 12RQ
Each employee of the Gedding Manufacturing Co., a firm using a job-cost inventory costing method, must reconcile his or her total hours worked with the hours worked on individual jobs using a job time record when the weekly payroll records are submitted. The total hours worked on the
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Each employee for the Gedding Manufacturing Co., a firm using ajob-cost inventory costing method, must reconcile his or her total hours worked with thehours worked on individual jobs using a job time sheet at the time weekly payroll time cardsare prepared. The job time sheet is then stapled to the time card. Explain how you could testthe direct labor dollars included in inventory as a part of the payroll and personnel tests
An important reconciliation in the payroll system is whena. the general ledger department compares the labor distribution summary from cost accounting to the disbursement voucher from accounts payable.b. the personnel department compares the number of employees authorized to receive a pay check to the number of paychecks prepared.c. the production department compares the number of hours reported on job tickets to the number of hours reported on time cards.d. the payroll department compares the labor distribution summary to the hours reported on time cards.
Chapter 21 Solutions
Auditing And Assurance Services
Ch. 21 - Prob. 1RQCh. 21 - Prob. 2RQCh. 21 - Prob. 3RQCh. 21 - Prob. 4RQCh. 21 - Prob. 5RQCh. 21 - Prob. 6RQCh. 21 - Prob. 7RQCh. 21 - Prob. 8RQCh. 21 - Prob. 9RQCh. 21 - Prob. 10RQ
Ch. 21 - Prob. 11RQCh. 21 - Each employee of the Gedding Manufacturing Co., a...Ch. 21 - Prob. 13.1MCQCh. 21 - Prob. 13.2MCQCh. 21 - Prob. 13.3MCQCh. 21 - Prob. 14.1MCQCh. 21 - Prob. 14.2MCQCh. 21 - Prob. 14.3MCQCh. 21 - Prob. 15.1MCQCh. 21 - Prob. 15.2MCQCh. 21 - Prob. 15.3MCQCh. 21 - Prob. 16DQPCh. 21 - Prob. 17DQPCh. 21 - Prob. 18DQPCh. 21 - Prob. 19DQPCh. 21 - Prob. 20DQPCh. 21 - Prob. 21DQPCh. 21 - Prob. 22DQPCh. 21 - Prob. 23DQPCh. 21 - Prob. 24DQPCh. 21 - Prob. 25DQPCh. 21 - Prob. 26DQPCh. 21 - Prob. 27DQPCh. 21 - Prob. 28DQPCh. 21 - Prob. 29DQPCh. 21 - Prob. 30C
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- 18. What is the certificate that is given to employee at the end of the year to aid him in the filing of his annual income tax return? a. Certificate of income tax withheld b. Certificate of employment. c. Certificate of compensation payment - tax withheld. d. Certificate of salaries paid. 19. In a job-order costing system, the cost incurred to rework unit that are common to all jobs should be debited to: a. Work in Process b. Manufacturing Overhead c.Materials d. Manufacturing Overhead Applied 20. In a job-order costing system, the recovery value of scrap that is significant in economic value, abnormal and due to the nature of particular jobs should be credited to: a. Work in Process b. Manufacturing Overhead c.Loss from Abnormal Spoilage d.Materialsarrow_forwardCategorize each of the following activities into the expenditure, conversion, or revenue cycles, and identify the applicable subsystem.a. preparing the weekly payroll for manufacturing personnelb. releasing raw materials for use in the manufacturing cyclec. recording the receipt of payment for goods soldd. recording the order placed by a customere. ordering raw materialsf. determining the amount of raw materials to orderarrow_forwardCategorize each of the following activities into the expenditure, conversion, or revenue cycles, and identify the applicable subsystem and give examples of each subsystem . a. Preparing the weekly payroll for manufacturing personnel b. Releasing raw materials for use in the manufacturing cycle c. Recording the receipt of payment for goods sold d. Recording the order placed by a customer e. Ordering raw materials f. Determining the amount of raw materials to order?arrow_forward
- Use the dates above to identify the status of each job. Compute the following balances for Thrifty: a. Work-in-Process Inventory at August 31 b. Finished Goods Inventory at August 31 c. Cost of Goods Sold forarrow_forwardThe cost accountant prepares the cost of production summary by first collecting the period’s production costs from summaries of material requisitions, payroll, and factory overhead analysis sheets. True or False?arrow_forwardWhich of the following accounts would be debited to record the factory supervisor's salary incurred during the period? Group of answer choices Salary expense Work-in-process inventory Costs of goods sold Manufacturing overheadarrow_forward
- With the aid of visual diagrams, describe in detail the audit trail for the following in a manufacturing business: Employee payroll for employee wages (using time cards or time sheets)arrow_forwardWhat is the purpose of the following control procedures (i.e., what threats is it designed to mitigate)? b. Reconciliation of labor costs (based on job-time ticket data) with payroll (based on time card data).arrow_forwardUnder a job order costing system, individual jobs are allocated an estimated amount of overhead costs (MOH or FOH), and this dollar amount is debited to Work-in-Process inventory. TRUE FALSEarrow_forward
- What document is used to determine the actual amount of direct labor to record on a job cost sheet? a. Wages payable account O b. Payroll register c. Time ticket d. Production orderarrow_forwardShow the solution in excel Required: - Schedule of labor hours and schedule of labor costs (Factory payroll distribution sheet)arrow_forwardARE YOU RIGHT OR WRONG? 1. Ideally, each salary check was handed to the employee, who signs a receipt for it. 2. The total revenue taxes deducted from an employee's gross compensation is a business expenditure. 3. The Task in Process account is debited for the amount of direct labour (at normal rate) invoiced to the various works in progress.arrow_forward
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Cost Accounting - Definition, Purpose, Types, How it Works?; Author: WallStreetMojo;https://www.youtube.com/watch?v=AwrwUf8vYEY;License: Standard YouTube License, CC-BY