Inventories are complex items, which are subject to manipulations. In a business corporation variety of inventories are procured or manufactured having different shapes, sizes, and different values. So it is very important to place a well-established procedure to keep an eye on these manipulations. Major deficiencies and inefficiencies present in the process.

Question

Armour, Inc., an advertising agency, applies overhead to jobs on the basis of direct professional labor hours. Overhead was estimated to be $226,000, direct professional labor hours were estimated to be 28,000, and direct professional labor cost was projected to be $425,000. During the year, Armour incurred actual overhead costs of $205,200, actual direct professional labor hours of 23,900, and actual direct labor costs of $333,000. By year-end, the firm's overhead was __.

Answer 1

Question

Chapter 11, Problem 10RQSC

a.

To determine

Introduction: Inventories are complex items, which are subject to manipulations. In a business corporation variety of inventories are procured or manufactured having different shapes, sizes, and different values. So it is very important to place a well-established procedure to keep an eye on these manipulations.

Major deficiencies and inefficiencies present in the process.

b.

To determine

Introduction: Inventories are complex items, which are subject to manipulations. In business corporations,a variety of inventories procured or manufactured having different shapes, sizes, and different values. So it is very important to place a well-established procedure to keep an eye on these manipulations.

Steps required to improve the process.

c.

To determine

Introduction: Inventories are complex items, which are subject to manipulations. In business corporations,a variety of inventories procured or manufactured having different shapes, sizes, and different values. So it is very important to place a well-established procedure to keep an eye on these manipulations.

The importance to have segregation between purchasing, receiving and payment function.

d.

To determine

Introduction: Inventories are complex items, which are subject to manipulations. In business corporations,a variety of inventories procured or manufactured having different shapes, sizes, and different values. So it is very important to place a well-established procedure to keep an eye on these manipulations.

Preliminary assessment of control risk, substantive testing of related account balances, substantive procedures related to the audit of inventory, expense, payables, and other related accounts.

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Armour, Inc., an advertising agency, applies overhead to jobs on the basis of direct professional labor hours. Overhead was estimated to be $226,000, direct professional labor hours were estimated to be 28,000, and direct professional labor cost was projected to be $425,000. During the year, Armour incurred actual overhead costs of $205,200, actual direct professional labor hours of 23,900, and actual direct labor costs of $333,000. By year-end, the firm's overhead was __.

The net sales for Casual Fashions, Inc. last year amounted to $1,126,800 and the average inventory at retail was $212,604. The published inventory turnover at retail is 6. Calculate the inventory turnover at retail, and if it is less than the published rate, calculate the target average inventory at retail. (Round your answer to the nearest dollar) a. $178,800 b. $187,800 c. $212,500 d. Turnover is greater

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Answer 2

Question

Chapter 11, Problem 10RQSC

a.

To determine

Introduction: Inventories are complex items, which are subject to manipulations. In a business corporation variety of inventories are procured or manufactured having different shapes, sizes, and different values. So it is very important to place a well-established procedure to keep an eye on these manipulations.

Major deficiencies and inefficiencies present in the process.

b.

To determine

Introduction: Inventories are complex items, which are subject to manipulations. In business corporations,a variety of inventories procured or manufactured having different shapes, sizes, and different values. So it is very important to place a well-established procedure to keep an eye on these manipulations.

Steps required to improve the process.

c.

To determine

Introduction: Inventories are complex items, which are subject to manipulations. In business corporations,a variety of inventories procured or manufactured having different shapes, sizes, and different values. So it is very important to place a well-established procedure to keep an eye on these manipulations.

The importance to have segregation between purchasing, receiving and payment function.

d.

To determine

Introduction: Inventories are complex items, which are subject to manipulations. In business corporations,a variety of inventories procured or manufactured having different shapes, sizes, and different values. So it is very important to place a well-established procedure to keep an eye on these manipulations.

Preliminary assessment of control risk, substantive testing of related account balances, substantive procedures related to the audit of inventory, expense, payables, and other related accounts.

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Answer 3

Question

Chapter 11, Problem 10RQSC

a.

To determine

Introduction: Inventories are complex items, which are subject to manipulations. In a business corporation variety of inventories are procured or manufactured having different shapes, sizes, and different values. So it is very important to place a well-established procedure to keep an eye on these manipulations.

Major deficiencies and inefficiencies present in the process.

b.

To determine

Introduction: Inventories are complex items, which are subject to manipulations. In business corporations,a variety of inventories procured or manufactured having different shapes, sizes, and different values. So it is very important to place a well-established procedure to keep an eye on these manipulations.

Steps required to improve the process.

c.

To determine

Introduction: Inventories are complex items, which are subject to manipulations. In business corporations,a variety of inventories procured or manufactured having different shapes, sizes, and different values. So it is very important to place a well-established procedure to keep an eye on these manipulations.

The importance to have segregation between purchasing, receiving and payment function.

d.

To determine

Introduction: Inventories are complex items, which are subject to manipulations. In business corporations,a variety of inventories procured or manufactured having different shapes, sizes, and different values. So it is very important to place a well-established procedure to keep an eye on these manipulations.

Preliminary assessment of control risk, substantive testing of related account balances, substantive procedures related to the audit of inventory, expense, payables, and other related accounts.

Expert Solution & Answer

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Answer 4

Question

Chapter 11, Problem 10RQSC

a.

To determine

Introduction: Inventories are complex items, which are subject to manipulations. In a business corporation variety of inventories are procured or manufactured having different shapes, sizes, and different values. So it is very important to place a well-established procedure to keep an eye on these manipulations.

Major deficiencies and inefficiencies present in the process.

b.

To determine

Introduction: Inventories are complex items, which are subject to manipulations. In business corporations,a variety of inventories procured or manufactured having different shapes, sizes, and different values. So it is very important to place a well-established procedure to keep an eye on these manipulations.

Steps required to improve the process.

c.

To determine

Introduction: Inventories are complex items, which are subject to manipulations. In business corporations,a variety of inventories procured or manufactured having different shapes, sizes, and different values. So it is very important to place a well-established procedure to keep an eye on these manipulations.

The importance to have segregation between purchasing, receiving and payment function.

d.

To determine

Introduction: Inventories are complex items, which are subject to manipulations. In business corporations,a variety of inventories procured or manufactured having different shapes, sizes, and different values. So it is very important to place a well-established procedure to keep an eye on these manipulations.

Preliminary assessment of control risk, substantive testing of related account balances, substantive procedures related to the audit of inventory, expense, payables, and other related accounts.

Expert Solution & Answer

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Answer 5

Chapter 11, Problem 10RQSC

a.

To determine

Introduction: Inventories are complex items, which are subject to manipulations. In a business corporation variety of inventories are procured or manufactured having different shapes, sizes, and different values. So it is very important to place a well-established procedure to keep an eye on these manipulations.

Major deficiencies and inefficiencies present in the process.

b.

To determine

Introduction: Inventories are complex items, which are subject to manipulations. In business corporations,a variety of inventories procured or manufactured having different shapes, sizes, and different values. So it is very important to place a well-established procedure to keep an eye on these manipulations.

Steps required to improve the process.

c.

To determine

Introduction: Inventories are complex items, which are subject to manipulations. In business corporations,a variety of inventories procured or manufactured having different shapes, sizes, and different values. So it is very important to place a well-established procedure to keep an eye on these manipulations.

The importance to have segregation between purchasing, receiving and payment function.

d.

To determine

Introduction: Inventories are complex items, which are subject to manipulations. In business corporations,a variety of inventories procured or manufactured having different shapes, sizes, and different values. So it is very important to place a well-established procedure to keep an eye on these manipulations.

Preliminary assessment of control risk, substantive testing of related account balances, substantive procedures related to the audit of inventory, expense, payables, and other related accounts.

Answer 6

Chapter 11, Problem 10RQSC

a.

To determine

Introduction: Inventories are complex items, which are subject to manipulations. In a business corporation variety of inventories are procured or manufactured having different shapes, sizes, and different values. So it is very important to place a well-established procedure to keep an eye on these manipulations.

Major deficiencies and inefficiencies present in the process.

Answer 7

Chapter 11, Problem 10RQSC

a.

To determine

Introduction: Inventories are complex items, which are subject to manipulations. In a business corporation variety of inventories are procured or manufactured having different shapes, sizes, and different values. So it is very important to place a well-established procedure to keep an eye on these manipulations.

Major deficiencies and inefficiencies present in the process.

Answer 8

b.

To determine

Introduction: Inventories are complex items, which are subject to manipulations. In business corporations,a variety of inventories procured or manufactured having different shapes, sizes, and different values. So it is very important to place a well-established procedure to keep an eye on these manipulations.

Steps required to improve the process.

Answer 9

b.

To determine

Introduction: Inventories are complex items, which are subject to manipulations. In business corporations,a variety of inventories procured or manufactured having different shapes, sizes, and different values. So it is very important to place a well-established procedure to keep an eye on these manipulations.

Steps required to improve the process.

Answer 10

c.

To determine

Introduction: Inventories are complex items, which are subject to manipulations. In business corporations,a variety of inventories procured or manufactured having different shapes, sizes, and different values. So it is very important to place a well-established procedure to keep an eye on these manipulations.

The importance to have segregation between purchasing, receiving and payment function.

Answer 11

c.

To determine

Introduction: Inventories are complex items, which are subject to manipulations. In business corporations,a variety of inventories procured or manufactured having different shapes, sizes, and different values. So it is very important to place a well-established procedure to keep an eye on these manipulations.

The importance to have segregation between purchasing, receiving and payment function.

Answer 12

d.

To determine

Introduction: Inventories are complex items, which are subject to manipulations. In business corporations,a variety of inventories procured or manufactured having different shapes, sizes, and different values. So it is very important to place a well-established procedure to keep an eye on these manipulations.

Preliminary assessment of control risk, substantive testing of related account balances, substantive procedures related to the audit of inventory, expense, payables, and other related accounts.

Answer 13

d.

To determine

Introduction: Inventories are complex items, which are subject to manipulations. In business corporations,a variety of inventories procured or manufactured having different shapes, sizes, and different values. So it is very important to place a well-established procedure to keep an eye on these manipulations.

Preliminary assessment of control risk, substantive testing of related account balances, substantive procedures related to the audit of inventory, expense, payables, and other related accounts.

Answer 14

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Ch. 11 - Prob. 3CYBK Ch. 11 - Prob. 11CYBK Ch. 11 - Prob. 7RQSC Ch. 11 - Prob. 10RQSC Ch. 11 - Prob. 28RQSC Ch. 11 - Prob. 38RQSC

Chapter 11 Solutions