EBK AUDITING+ASSURANCE SERVICES
17th Edition
ISBN: 9780135171219
Author: ARENS
Publisher: PEARSON CO
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Chapter 19, Problem 20DQP
a.
To determine
Explain the purpose of the each listed internalcontrol.
b.
To determine
To state one test of control the auditor use to test for its existence
c.
To determine
To state one substantive procedure for whether the control is actually preventing the misstatement in property, plant and equipment.
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What is the value of ending inventory using variable costing ?
1. Papyrus Company manufacturers laser printers. It has outlined the following overhead cost drivers:
Overhead Costs Pool
Cost Driver
Overhead Cost
Budgeted Level for Cost Driver
Quality control
Number of inspections
$ 84,000
1,500
Machine operation
Machine hours
240,000
2,000
Materials handling
Number of batches
1,600
40
Miscellaneous overhead cost
Direct labor hours
64,000
6,400
Papyrus Company has an order for 1,000 laser printers that has the following production requirements:
Number of inspections
330
Machine hours
280
Number of batches
5
Direct labor hours
850
What is the total overhead cost per unit of the laser printers order using activity-based costing?
Note: Rounded to the nearest cent.
2. If Activity X had a budgeted cost of $129,000 and a budgeted activity consumption of 15,000 engineering hours, what would the activity consumption rate be?
Happy Toys produced 10,000 units in March. Production costs were: direct materials $50,000, direct labor $30,000, and factory overhead $20,000. What the cost per unit?
Chapter 19 Solutions
EBK AUDITING+ASSURANCE SERVICES
Ch. 19 - Identify three asset accounts, three expense...Ch. 19 - Explain the relationship between substantive tests...Ch. 19 - Prob. 3RQCh. 19 - Prob. 4RQCh. 19 - Prob. 5RQCh. 19 - Prob. 6RQCh. 19 - Prob. 7RQCh. 19 - Prob. 8RQCh. 19 - Prob. 9RQCh. 19 - Prob. 10RQ
Ch. 19 - Which documents will be used to verify accrued...Ch. 19 - Prob. 12RQCh. 19 - Prob. 13RQCh. 19 - Prob. 14RQCh. 19 - Prob. 15.1MCQCh. 19 - Prob. 15.2MCQCh. 19 - Prob. 15.3MCQCh. 19 - Prob. 16.1MCQCh. 19 - Prob. 16.2MCQCh. 19 - Prob. 16.3MCQCh. 19 - Prob. 17.1MCQCh. 19 - Prob. 17.2MCQCh. 19 - Prob. 17.3MCQCh. 19 - Prob. 18.1MCQCh. 19 - Prob. 18.2MCQCh. 19 - Prob. 18.3MCQCh. 19 - Prob. 19DQPCh. 19 - Prob. 20DQPCh. 19 - Prob. 21DQPCh. 19 - Prob. 22DQPCh. 19 - Prob. 24DQPCh. 19 - Prob. 25DQPCh. 19 - You are auditing the financial statements of...Ch. 19 - Prob. 27DQPCh. 19 - Prob. 28DQPCh. 19 - Prob. 29DQP
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