u are auditing payroll for the Morehead lechnologies 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.) i (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 8% increase in the number of units produced and sold. Note 2: Use 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. Executive salaries Factory hourly payroll (see Note 1) Factory supervisors' salaries Office salaries Sales commissions (see Note 2) (1) Preliminary Balance 10/31/2019 615,970 11,476,319 810,588 2,055,302 2.367.962 Expected Value 10/31/2019 Requirement b. [(2)-(1)]/(2) Difference as a Percentage % % Data table Sales Executive salaries Factory hourly payroll Factory supervisors' salaries Office salaries Audited Balance 10/31/2018 $ 51,316,234 S 57,474,182 615.970 546,940 10.038.877 785,825 1,990,296 2,018,149 11,476,319 810,588 2,055,302 Sales commissions 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 8% is attributed to an increase in the number of units sold. Print Preliminary Balance 10/31/2019 Done X More info 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 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. - X 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 all sales on which a commission is given. Approximately 75 percent of sales earn sales commission. The other 25 percent are "call-ins," for which no commission is given. Commissions are paid in the month following the month they are earned

u are auditing payroll for the Morehead lechnologies 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.) i (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 8% increase in the number of units produced and sold. Note 2: Use 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. Executive salaries Factory hourly payroll (see Note 1) Factory supervisors' salaries Office salaries Sales commissions (see Note 2) (1) Preliminary Balance 10/31/2019 615,970 11,476,319 810,588 2,055,302 2.367.962 Expected Value 10/31/2019 Requirement b. [(2)-(1)]/(2) Difference as a Percentage % % Data table Sales Executive salaries Factory hourly payroll Factory supervisors' salaries Office salaries Audited Balance 10/31/2018 $ 51,316,234 S 57,474,182 615.970 546,940 10.038.877 785,825 1,990,296 2,018,149 11,476,319 810,588 2,055,302 Sales commissions 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 8% is attributed to an increase in the number of units sold. Print Preliminary Balance 10/31/2019 Done X More info 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 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. - X 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 all sales on which a commission is given. Approximately 75 percent of sales earn sales commission. The other 25 percent are "call-ins," for which no commission is given. Commissions are paid in the month following the month they are earned

PAYROLL ACCT.,2019 ED.(LL)-TEXT

19th Edition

ISBN:9781337619783

Author:BIEG

Publisher:BIEG

Chapter6: Analysing And Journalizing Payroll

Section: Chapter Questions

Problem 16PB: In the Illustrative Case in this chapter, payroll transactions for Brookins Company were analyzed,...

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