Provide FOUR objectives of the internal control that should be exercised over a wages system.
Q: Liability transactions The following items were selected from among the transactions completed by…
A: Journal entries are the basic entries or initial entries passed in the books of accounts in order to…
Q: Lendrum Servicing's four employees are paid every two weeks. Atkins runs the office and the…
A: Net pay refers to an amount that is to the employees of the company after deducting all the expenses…
Q: utland Business Services (RBS) provides miscellaneous consulting and services to local businesses.…
A: The service revenue by providing services to the customers by a company. For earnings service…
Q: If at the end of a year, the company's total Assets are $10,100 and total Liabilities are $6,100,…
A: Answer:- Net income meaning:- The amount earned by a business after costs, allowances and taxes is…
Q: Woodland Industries manufactures and sells custom-made windows. Its job costing system was designed…
A: Activity based costing is that type of costing system that assigned the costs to the products and…
Q: The following data relates to Spurrier Company's budgeted amounts for next year. Budgeted Data:…
A: An overhead rate, also known as an overhead allocation rate or burden rate, is a measure used to…
Q: The Gourmand Cooking School runs short cooking courses at its small campus. Management has…
A: Answer:- Flexible budget meaning:- Budget that is flexible can be changed to reflect the changes in…
Q: If available cash except for a $5,000 contingency fund is distributed immediately, Dazzle, Enigma,…
A: The cash distribution to the partners is always paid to the partners on the liquidation process…
Q: I tihnk this solution is inomplete as it requires bank reconcillation and also adjusting entries.…
A: The bank reconciliation statement is prepared to equate the balances of cash book and bank statement…
Q: [The following information applies to the questions displayed below.] Carlberg Company has two…
A: FIFO METHOD :— Under this method, equivalent units is calculated by adding equivalent units in…
Q: Sheridan Toys and Games, Inc manufactures specialty toys. Sheridan uses a traditional products…
A: It is a method of overhead allocation in which overheads are assigned based on cost drivers based on…
Q: Fair value of plan assets, Jan. 1, 2020 PBO Jan. 1, 2020, not including any items below PSC from…
A: Plan assets refer to the investments or assets held by a company's employee benefit plan, such as a…
Q: Mocha Company manufactures a single product by a continuous process, involving three production…
A: Journal entries are used to record the accounting transactions in chronological order under double…
Q: Journalize the following transactions, using the direct write-off method of accounting for…
A: Direct Write-off -Under this method of accounting, uncollectible accounts are charged directly to…
Q: n entity to which money is owned as a debtor and such transaction will be recorded in the trade…
A: When an entity is owed money as a debtor, the transaction will be recorded in the trade receivable…
Q: Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments,…
A: Overheads mean all types of indirect costs and expenses being incurred in the business. These costs…
Q: Chapter 2 Reporting Intercorporate Investments and Consolidation of Wholly Owned Subsidiaries with…
A: There are mainly three methods to account for investment in subsidiary :1. Fair Value Method2.…
Q: Beginning inventory, purchases, and sales data for tennis rackets are as follows: April 3 Inventory…
A: FIFO,LIFO and Moving Weighted average are the different methods of inventory method. First…
Q: Mediterranean Corporation is considering a project that would require an initial investment of…
A: Payback period: Payback period is the length of time in which an investment reaches its break-even…
Q: Prepare the issuer's journal entry for each of the following separate transactions. a. On March 1,…
A: For running any business or company , we need to have long term sources of funds so that business…
Q: Green Grow Incorporated (GGI) manufactures lawn fertilizer. Because of the product’s very high…
A: Total relevant cost of filling the special sales order: The relevant costs include the variable…
Q: Tamarisk Company purchased Machine #201 on May 1, 2020. The following information relating to…
A: Business entities are required to compute the depreciation expense so that in the balance the assets…
Q: QUESTION 9 You plan on starting a lawn mowing business by investing $700 of your own money and…
A: CONTRIBUTION MARGIN INCOME STATEMENT Contribution Margin Income Statement is One of the Important…
Q: Limonade produced 10,000 cases of powdered drink mix and sold 9,000 cases in April. The sales price…
A: MARGINAL COSTING INCOME STATEMENT Marginal Costing Income Statement is One of the Important Cost…
Q: mper Corporation is a diversified manufacturer of industrial goods. The company's activity-based…
A: Activity based costing is a method of overhead cost allocation. Under this method overhead is…
Q: While assisting the accounting department with completing the current year's financial statements,…
A: When assisting the accounting department in completing the current year's financial statements, a…
Q: W-r-i-t-e- -y-o-u-r- -u-n-d-e-r-s-t-a-n-d-i-n-g- -a-n-d- -l-e-a-r-n-i-n-g-s- -o-f- -t-h-e-…
A: Income tax is an important aspect of the financial system in the Philippines. It helps the…
Q: CLICK HERE TO SAVE YOUR WORK B 9 126 17 18 11 7 The partners Cornish and Duffee share in the profits…
A: Partnership is the relation between two or more person, it has the following characteristicsThey…
Q: ability to pay short-term debts (does it have sufficient current assets to pay its current…
A: The financial health and stability of a company are crucial considerations for investors, creditors,…
Q: bove, was prepared immediately before this transaction. Provide the Investor Company's balances…
A: A balance sheet is an accounting report that shows a corporation's assets liabilities, and…
Q: 8 eBook Hint Fit-for-Life Foods reports the following income statement accounts for the year ended…
A: Multi Step Income Statement is that income statement which shows all revenues and expenses of the…
Q: Montoure Company uses a periodic inventory system. It entered into the following calendar-year…
A: The company can use different valuation methods to account for inventory. The value of inventory and…
Q: Required: 1. Prepare the journal entry at the beginning of 2018 to record the change in principle.…
A: (1) Prepare the journal entry at the beginning of 2018 to record the change in principleDateAcount…
Q: Current operating income for Bay Area Cycles Company is $26,000. Selling price per unit is $100, the…
A: Contribution margin is defined as the excess of the selling price over the variable cost incurred in…
Q: Mansfield Information Systems (MIS) is an IT support firm. Managers and staff are billed to clients…
A: Budgeting is a process of estimation of future income and expenditure for a particular period of…
Q: Presented below is information related to Sunland Company. Ending Inventory (End-of-Year Prices)…
A: DateInventory at end of the yearPrice IndexInventory at Base yearChange from Prior year December 31,…
Q: Weighted Average Method, Equivalent Units Bukavu Company produces a product where all manufacturing…
A: The equivalent units represents the percentage of the work completed for the units. The units are…
Q: Sky Ltd acquired all the issued shares of Jupiter Ltd on 1 January 2019. The following transactions…
A: When a company acquires another company, it’s called consolidation or merger. The company which…
Q: $32,000, and $25,000, respectively. The desired inventories on December 31 for finished goods, work…
A: The cost of goods manufactured includes the cost of goods that are finished during the period. The…
Q: The Johnson Corporation reported a LIFO reserve of $45,000 at the end of the year. The beginning…
A: LIFO (last in first out) reserve is a term that represents the difference between the cost of…
Q: Conn Man’s Shops, a national clothing chain, had sales of $370 million last year. The business has a…
A: Answer:- 1. Profit margin ratio = (Net income / Sales) x 1002. Dividend payout ratio = (Total…
Q: Company issues $1,000,000 face bonds, 5% coupon rate, 10 years term. Issues on March 1, 2013,…
A: The bond is issued at a premium when the market interest rate is lower but the coupon rate offered…
Q: Geneva Powder Company produces body powders in batches. Each type of powder can be sold in its…
A: Joint costs are expenses incurred during a production process where several products are made at…
Q: how did you find the total unit cost 1. The following balances were taken from the accounts of…
A: COST OF GOODS SOLDCost of Goods Sold States the Amount of Cost Included in the Number of Units Sold…
Q: Cullumber Corporation provides the following information about its defined benefit pension plan (in…
A: Defined benefit expenses refer to the costs incurred by an employer for providing benefits to its…
Q: Sell at Split-Off or Process Further Decision, Alternatives, Relevant Costs Vihaan Chemicals…
A: When a manufacturing process produces two or more goods, the decision to sell or process further is…
Q: "Based on the above and in consideration of the indirect method, determine the net cash provided by…
A: It has been given that an indirect method have to be applied for the computation of the cash…
Q: 1 The estimated cash receipts from accounts receivable collections. 2. The gross amount of accounts…
A: Estimated cash receipts is calculated by calculating the percentage of collection received from…
Q: Key figures for Apple and Google follow. $ millions Net income Income taxes Interest expense Current…
A: Interest expense is the cost incurred to borrow the amount.Net income is the difference between…
Q: Use the following excerpts from Algona Company’s financial statements and complete the worksheet…
A: Cash received from customer :— It is the collection of accounts receivable from customer during the…
Provide FOUR objectives of the internal control that should be exercised over a wages system.
Step by step
Solved in 3 steps
- You are a management accountant for Time Treasures Company, whose company has recently signed an outsourcing agreement with Spotless. Inc., a janitorial service company. Spotless will provide all of Time Treasures janitorial services, including sweeping floors, hauling trash, washing windows, stocking restrooms, and performing minor repairs. Time Treasures will be billed at an hourly rate based on the type of service performed. The work of common laborers (sweeping, hauling trash) is to be billed at $8 per hour. More skilled (repairs) and more dangerous work (washing outside windows on the 23rd floor) are to be billed at $18 per hour. Supervisory time is to be billed at $20 per hour. Spotless will submit monthly invoices, which will show the number and types of hours for which Time Treasures is being charged. The outsourcing contract is simple and straightforward. A. What are some of the internal control problems you foresee as a result of our sourcing the janitorial service with this contract? B. Explain recommendations to control risk that would you suggest after reviewing the contract.Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of 25,750 and is capable of processing as many as 6,500 purchase orders per year. Each clerk uses a PC and laser printer in processing orders. Time available on each PC system is sufficient to process 6,500 orders per year. The cost of each PC system is 1,100 per year. In addition to the salaries, Elliott spends 27,560 for forms, postage, and other supplies (assuming 26,000 purchase orders are processed). During the year, 25,350 orders were processed. Required: 1. Classify the resources associated with purchasing as (1) flexible or (2) committed. 2. Compute the total activity availability, and break this into activity usage and unused activity. 3. Calculate the total cost of resources supplied (activity cost), and break this into the cost of activity used and the cost of unused activity. 4. (a) Suppose that a large special order will cause an additional 500 purchase orders. What purchasing costs are relevant? By how much will purchasing costs increase if the order is accepted? (b) Suppose that the special order causes 700 additional purchase orders. How will your answer to (a) change?Huron Manufacturing Co. uses a job order cost system to cost its products. It recently signed a new contract with the union that calls for time-and-a-half for all work over 40 hours a week and double-time for Saturday and Sunday. Also, a bonus of 1% of the employees earnings for the year is to be paid to the employees at the end of the fiscal year. The controller, the plant manager, and the sales manager disagree as to how the overtime pay and the bonus should be allocated. An examination of the first months payroll under the new union contract provisions shows the following: Analysis of the supporting payroll documents revealed the following: a. More production was scheduled each day than could be handled in a regular workday, resulting in the need for overtime. b. The Saturday and Sunday hours resulted from rush orders with special contract arrangements with the customers. The controller believes that the overtime premiums and the bonus should be charged to factory overhead and spread over all production of the accounting period, regardless of when the jobs were completed. The plant manager favors charging the overtime premiums directly to the jobs worked on during overtime hours and the bonus to administrative expense. The sales manager states that the overtime premiums and bonus are not factory costs chargeable to regular production but are costs created from administrative policies and, therefore, should be charged only to administrative expense. Required: 1. Evaluate each positionthe controllers, the plant managers, and the sales managers. If you disagree with all of the positions taken, present your view of the appropriate allocation. 2. Prepare the journal entries to illustrate the position you support, including the accrual for the bonus.
- The main office of a large bank has an annual turnover of 500 office workers. As an employment officer of this bank, discuss the sources you would use in obtaining replacement employees.Costa, Inc., recently converted from a 5-day, 40-hour workweek to a 4-day, 40-hour workweek, with overtime continuing to be paid at one and one-half times the regular hourly rate for all hours worked beyond 40 in the week. In this company, time is recorded under the continental system, as shown on the time card on the following page. Barbara Bansta is part of the Group B employees whose regular workweek is Tuesday through Friday. The working hours each day are 800 to 1200; 1230 to 1630; and 1800 to 2000. The company disregards any time before 800, between 1200 and 1230, and between 1630 and 1800, and permits employees to ring in up to 10 minutes late before any deduction is made for tardiness. Deductions are made to the nearest of an hour for workers who are more than 10 minutes late in ringing in. Refer to the time card and compute: a. The daily total hours ..........................................................................___________ b. The total hours for the week ...............................................................___________ c. The regular weekly earnings ................................................................___________ d. The overtime earnings (company rounds O.T. rate to 3 decimal places)___________ e. The total weekly earnings .....................................................................__________Research Sdn Bhd is a marketing research firm. The company employs an interview manager to control 40 interviewers who conduct interviews with hypermarket customers. The interviewers are paid monthly in arrears for hours worked, with hourly rates and productivity bonus payments being dependent on surveys undertaken. They submit their monthly time sheets to the company’s head office for processing and the company operates a separate monthly payroll specifically for interviewers’ wages. The company’s wages software program produces on request: A master file update report – detailing the update report number, the amendments madesince the last report, and the number of existing employees on file. A current period payment details report – showing gross payment, deductions and netpayment amounts – by employee and in total. Wage slips – the computerised production of which is requested only after other controlprocedures employed have ensured that information provided on the current…
- Research Sdn Bhd is a marketing research firm. The company employs an interview manager to control 40 interviewers who conduct interviews with hypermarket customers. The interviewers are paid monthly in arrears for hours worked, with hourly rates and productivity bonus payments being dependent on surveys undertaken. They submit their monthly time sheets to the company’s head office for processing and the company operates a separate monthly payroll specifically for interviewers’ wages. The company’s wages software program produces on request: A master file update report – detailing the update report number, the amendments madesince the last report, and the number of existing employees on file. A current period payment details report – showing gross payment, deductions and netpayment amounts – by employee and in total. Wage slips – the computerised production of which is requested only after other controlprocedures employed have ensured that information provided on the current…Florenzo Corp. is a small manufacturing firm with 60 employees in seven departments. When the need arises for new workers in the plant, the departmental manager interviews applicants and hires on the basis of those interviews. The manager has each new employee complete a withholding form. The manager then writes the rate of pay on the W‐4 and forwards it to payroll. When workers arrive for their shift, they pull their time cards from a holder near the door and keep the time card with them during the day to complete the start and end times of their work day. On Friday, the time cards are removed from the holder and taken to payroll by any employee who is not busy that morning. If there were any pay rate changes for the payroll period due to raises or promotions, the manager calls the payroll department to inform payroll of these rate changes. Using the rate changes and the time cards, the payroll department prepares the checks from the regular bank account of Florenzo Corp. The manager…Shadder is a small company that manufactures knitwear products. It employs approximately 120 staff, all of whom are paid by bank transfer. Permanent factory staff are paid on a weekly basis based on the number of hours worked as evidenced by clock cards. Administration and sales staff are paid a monthly salary. The two directors of the company are also paid a monthly salary. Sales staff are paid a quarterly bonus calculated on the basis of sales. Directors are paid an annual bonus based on profits. During peak production seasons, temporary factory staff are hired through an agency and are paid on a weekly basis, based on their output. Supervisors at Shadder authorise documentation indicating the number of items produced by temporary staff. The agency is then paid by bank transfer and it is responsible for paying the temporary staff and for the deduction of tax and national insurance. You will be performing the audit of the financial statements for the year ending 31 March 2021 and you…
- Matt Demko is the loading dock supervisor for a dry cement packaging company. His work crew is composed of unskilled workers who load large transport trucks with bags of cement, gravel, and sand. The work is hard, and the employee turnover rate is high. Employees record their attendance on separate time cards. Demko authorizes payroll payments each week by signing the time cards and submitting them to the payroll department. Payroll then prepares the paychecks and gives them to Demko, who distributes them to his work crew. a. Prepare a systems flowchart of the procedures described here. b. Identify any control problems in the system. c. What sorts of fraud are possible in this system?You are an audit senior of Samyantwi & Partners and are in the process of reviewing the systems testing completed on the payroll cycle of Brown Industries Ltd, as well as preparing the audit programmes for the final audit.Brown operates several chemical processing factories across the country, it manufactures 24 hours a day, seven days a week and employees work a standard shift of eight hours and are paid for hours worked at an hourly rate. Factory employees are paid weekly, with approximately 80% being paid by bank transfer and 20% in cash; the different payment methods are due to employee preferences and Brown has no plans to change these methods. The administration and sales teams are paid monthly by bank transfer.Factory staff are each issued a sequentially numbered clock card which details their employee number and name. Employees swipe their cards at the beginning and end of the eight-hour shift and this process is not supervised. During the shift employees are entitled to a…Dave’s Scooters is a small manufacturer of specialty scooters. The company employs 14 production workers and four administrative persons. The following procedures are used to process the company’s weekly payroll:a. Whenever an employee receives a pay raise, the supervisor must fill out a wage adjustment form, which is signed by the company president. This form is used to change the employee’s wage rate in the payroll system.b. All employees are required to record their hours worked by clocking in and out on a time clock. Employees must clock out for lunch break. Due to congestion around the time clock area at lunch time, management has not objected to having one employee clock in and out for an entire department.c. Whenever a salaried employee is terminated, Personnel authorizes Payroll to remove the employee from the payroll system. However, this procedure is not required when an hourly worker is fired. Hourly employees only receive a paycheck if their time cards show hours worked.…