EBK AUDITING+ASSURANCE SERVICES
EBK AUDITING+ASSURANCE SERVICES
17th Edition
ISBN: 9780135171219
Author: ARENS
Publisher: PEARSON CO
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Chapter 18, Problem 18.2MCQ
To determine

Indicate the assertion which would control risk for purchases.

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1. Clean Angling Incorporated processes king salmon for various distributors. Two departments are involved — processing and packaging. Data relating to tons of king salmon processed in the processing department during June are provided below:   Tons of King Salmon Percent Completed Materials Conversion Work-in-process inventory — June 1 2,300 97 88 Work-in-process inventory — June 30 3,600 68 48 Started processing during June 8,600     Total equivalent units for conversion under the FIFO method are calculated to be: 2. Armor Company had the following information for the month of December. All direct materials were one hundred percent complete, and beginning materials cost $33,700. Work in Process Inventory Beginning balance @ 12/1: 640 units, 10% completed $ 37,000 Completed 1,160 units and transferred them to finished goods inventory $ 278,607 Direct materials 85,000     Direct labor 61,000     Overhead Property taxes 27,000     Depreciation 58,000…
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