Crystal Bay Hospital's central supply tracks sterile items using a batch code system. When opening count shows 240 items, used items logged as 185, damaged items recorded as 15, but closing count reveals 25 items, what is the unaccounted variance?
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- Englert Hospital began using standards to evaluate its Admissions Department. The standard was broken into two types of admissions as follows: Type of Admission Standard Time to CompleteAdmission Record Unscheduled admission 30 min. Scheduled admission 15 min. The unscheduled admission took longer because name, address, and insurance information needed to be determined and verified at the time of admission. Information was collected on scheduled admissions prior to the admissions, which was less time-consuming. The Admissions Department employs four full-time people (40 productive hours per week, with no overtime) at $15 per hour. For the most recent week, the department handled 140 unscheduled and 350 scheduled admissions. a. How much was actually spent on labor for the week?$fill in the blank 1 b. What are the standard hours for the actual volume for the week (round to one decimal place)?fill in the blank 2 hours c. Calculate the time…Valley Hospital began using standards to evaluate its Admissions Department. The standard was broken into two types of admissions as follows: Type of Admission Standard Time to CompleteAdmission Record Unscheduled 30 min. Scheduled 20 min. The unscheduled admission took longer because name, address, and insurance information needed to be determined and verified at the time of admission. Information was collected on scheduled admissions prior to admitting the patient, thus requiring less time in admissions. The Admissions Department employs four full-time people for 40 hours per week at $15 per hour. For the most recent week, the department handled 176 unscheduled and 240 scheduled admissions. a. How much was actually spent on labor for the week?$ b. What are the standard hours for the actual volume of work for the week? (Round to the nearest whole hour.) hours c. Compute the direct labor time variance, and report how well the department performed for the…dA clerk in the accounting department periodically reviews the inventory records in Dorder to determine which items need reordering. When she notes that the quantity on hand has fallen below a pre-established reorder point, she prepares a prenumbered purchase requisition in two copies. One copy f the PR is placed in a chronological file until the matching purchase order is received. The original PR is sent to the purchasing department, where a buyer (1) decides on a suitable supplier by reference to a supplier list and (2) prepares a prenumbered purchase order in four copies. The original copy of the purchase order is signed by the purchasing manager and mailed to the designated supplier. The second copy of the PO is returned to the inventory clerk in the accounting department, who (a) pulls the matching second copy of the PR from the temporary file (where it had been filed chronologically), (b) posts the ordered quantities to the inventory records, and (c) files the purchase…
- The procurement process for Omni Wholesale Company includes a series of activities that transforms a materials requisition into a vendor check. The process begins with a request for materials. The requesting department prepares and sends a materials request form to the Purchasing Department. The Purchasing Department then places a request for a quote to vendors. Vendors prepare bids in response to the request for a quote. A vendor is selected based on the lowest bid. A purchase order to the low-bid vendor is prepared. The vendor delivers the materials to the company, whereupon a receiving ticket is prepared. Payment to the vendor is authorized if the materials request form, receiving ticket, and vendor invoice are in agreement. These three documents fail to agree 40% of the time, initiating effort to reconcile the differences. Once the three documents agree, a check is issued. The process can be diagrammed as follows: An activity analysis indicated the following activity costs with…A production line operation is designed to fill cartons with laundry detergent to a mean weight of 32 ounces. A sample of cartons is periodically selected and weighed to determine whether underfilling or overfilling is occurring. If the sample data lead to a conclusion of underfilling or overfilling, the production line will be shut down and adjusted to obtain proper filling. a. Formulate the null and alternative hypotheses that will help in deciding whether to shut down and adjust the production line. b. Comment on the conclusion and the decision when H0 cannot be rejected. c. Comment on the conclusion and the decision when H0 can be rejected.Case StudyCarosel Limited is a specialty motor vehicle parts supplier, procuring parts from a largenumber of suppliers. As part of the interim audit work four weeks prior to the companyyear’s end, you are testing the procurement/purchases systems, attending the inventory countand examining the sales and cash receipts.Purchasing/Procurement System When the quantity of a specific part falls below re-order level, an e-mail is sent to theprocurement department detailing the part required and the quantity to order. Partsinventory is monitored by the store’s manager with a copy of the e-mail filed on thestore manager's computer. Procurement department staff check the e-mail, allocate the order to an authorisedsupplier and send the order to that supplier using Electronic Data Interchange (EDI).The order is identified by a unique order number with a copy of the EDI order filed inthe order database by the computer system. When goods are received at Carosel, the stores clerk confirms that the…
- You are a member of the audit team of BSA and Co. examining the accounts of TOK Manufacturing for the year ended December 31, 2020. BSA has audited TOK for the past 5 years. You have been assigned the task of searching for unrecorded liabilities. You have determined that all payroll taxes, income and property taxes, sales taxes, and interest have been properly reflected by TOK. In addition, you have obtained the following copy of TOK's 12/31/20 adjusting journal entry to reflect other unrecorded liabilities at year-end: Raw materials inventory Utilities expense 23,675 6.400 Professional fees 33,690 Manufacturing supplies Accounts payable To record the following invoices unpaid at 12/31/20: Fox Manufacturing 8,900 72,665 P23,675 2,760 Consolidated Gas Meralco Andersen (consulting) Luzmin Suppliers Deli Products 3,640 33,690 7,700 1,200 Although the Luzmin Suppliers invoice was received in December, the supplies were shipped to TOK on January 2 and received on January 4.K Cannon, Inc., is a manufacturer of portable CD players. The company purchases raw materials such as plastics and computer chips for its conversion cycle. The following describes K Cannon’s purchases and payments procedures. John, the purchasing department clerk, monitors raw materials inventory levels and prepares a purchase requisition when purchases are necessary. These are sent to the purchasing agent, who prepares six copies of a purchase order. Two purchase orders are sent directly to the vendor. One is placed in an open purchase order file in the purchasing department, and one is used to post to the purchases journal. Each week the purchasing department clerk prepares a journal voucher from the purchases journal and sends it to the general ledger department for posting. The AP and the receiving departments also each receive a copy of the purchase order, which they file temporarily. Upon receiving the raw materials, the receiving department clerk creates five copies of the…Please solve all questions. The Soap Manufacturing Company has three employees who work in the warehouse. All of the warehouse workers are authorized to order inventory when it falls below the reorder level. The workers complete a purchase order and mail it to the supplier of their choice. The inventory is delivered directly to the warehouse. The workers send a memo to accounts payable reporting the receipt of inventory. Accounts payable compares the warehouse memo to the supplier’s invoice. Accounts payable prepares a check which the treasurer signs. a Based on your point of view, discuss FIVE (5) internal controls that being needed for improvements to the Soap Manufacturing Company. b. Discuss the documents related to the purchasing cycle in above case study.
- Owl-Eye Radiologists (OR) does various types of diagnostic imaging. Radiologists perform tests using sophisticated equipment. OR's management wants to compute the costs of performing tests for two different types of patients: those who are hospitalized (including those in emergency rooms) and those who are not hospitalized but are referred by physicians. The data for June for the two categories of patients follow. Hospital Patients Other Patients Total Units (i.e., procedures) produced 660 810 1,470 Equipment-hours used 220 150 370 Direct labor-hours 480 170 650 Direct labor costs $ 38,400 $ 10,200 $ 48,600 Overhead costs $ 48,500 The accountant first assigns overhead costs to two pools: overhead related to equipment-hours and overhead related to labor-hours. The analysis of overhead accounts by the cost accountant follows. Account Amount Related to: Utilities $ 4,860 Equipment-hours Supplies…Solve all questions. a. The Soap Manufacturing Company has three employees who work in the warehouse. All of the warehouse workers are authorized to order inventory when it falls below the reorder level. The workers complete a purchase order and mail it to the supplier of their choice. The inventory is delivered directly to the warehouse. The workers send a memo to accounts payable reporting the receipt of inventory. Accounts payable compares the warehouse memo to the supplier’s invoice. Accounts payable prepares a check which the treasurer signs. a. Based on your point of view, discuss and explain each of them include examples FIVE (5) internal controls that being needed for improvements to the Soap Manufacturing Company. b. briefly discuss and explain the documents related to the purchasing cycle in above case study with any situationThe inventory control clerk examines the inventory records for items that must bereplenished and prepares a two-part purchase requisition. Copy 1 of the requisition issent to the purchasing department and Copy 2 is filed.Upon receipt of the requisition, the purchase clerk selects a supplier from the validvendor journal (reference file) and prepares a three-part purchase order. Copy 1 is sentto the supplier, Copy 2 is sent to the accounts payable department where it is filedtemporarily, and Copy 3 is filed in the purchasing department.A few days after the supplier ships the order, the goods arrive at the receivingdepartment. They are inspected and the receiving clerk prepares a three-part receivingreport describing the number and quality of the items received. Copy 1 of the receivingreport accompanies the goods to the warehouse, where they are secured and thereceiving report is filed. Copy 2 is sent to inventory control, where the clerk posts to theinventory records (journal) and files…