EBK AUDITING+ASSURANCE SERVICES
17th Edition
ISBN: 9780135171219
Author: ARENS
Publisher: PEARSON CO
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 21, Problem 12RQ
Each employee of the Gedding Manufacturing Co., a firm using a job-cost inventory costing method, must reconcile his or her total hours worked with the hours worked on individual jobs using a job time record when the weekly payroll records are submitted. The total hours worked on the
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
An important reconciliation in the payroll system is whena. the general ledger department compares the labor distribution summary from cost accounting to the disbursement voucher from accounts payable.b. the personnel department compares the number of employees authorized to receive a pay check to the number of paychecks prepared.c. the production department compares the number of hours reported on job tickets to the number of hours reported on time cards.d. the payroll department compares the labor distribution summary to the hours reported on time cards.
Categorize each of the following activities into the expenditure, conversion, or revenue cycles, and identify the applicable subsystem and give examples of each subsystem . a. Preparing the weekly payroll for manufacturing personnel
b. Releasing raw materials for use in the manufacturing cycle
c. Recording the receipt of payment for goods sold
d. Recording the order placed by a customer
e. Ordering raw materials
f. Determining the amount of raw materials to order?
18. What is the certificate that is given to employee at the end of the year to aid him in the filing of his annual income tax return?
a. Certificate of income tax withheld
b. Certificate of employment.
c. Certificate of compensation payment - tax withheld.
d. Certificate of salaries paid.
19. In a job-order costing system, the cost incurred to rework unit that are common to all jobs should be debited to:
a. Work in Process
b. Manufacturing Overhead
c.Materials
d. Manufacturing Overhead Applied
20. In a job-order costing system, the recovery value of scrap that is significant in economic value, abnormal and due to the nature of particular jobs should be credited to:
a. Work in Process
b. Manufacturing Overhead
c.Loss from Abnormal Spoilage
d.Materials
Chapter 21 Solutions
EBK AUDITING+ASSURANCE SERVICES
Ch. 21 - Prob. 1RQCh. 21 - Prob. 2RQCh. 21 - Prob. 3RQCh. 21 - Prob. 4RQCh. 21 - Prob. 5RQCh. 21 - Prob. 6RQCh. 21 - Prob. 7RQCh. 21 - Prob. 8RQCh. 21 - Prob. 9RQCh. 21 - Prob. 10RQ
Ch. 21 - Prob. 11RQCh. 21 - Each employee of the Gedding Manufacturing Co., a...Ch. 21 - Prob. 13.1MCQCh. 21 - Prob. 13.2MCQCh. 21 - Prob. 13.3MCQCh. 21 - Prob. 14.1MCQCh. 21 - Prob. 14.2MCQCh. 21 - Prob. 14.3MCQCh. 21 - Prob. 15.1MCQCh. 21 - Prob. 15.2MCQCh. 21 - Prob. 15.3MCQCh. 21 - Prob. 16DQPCh. 21 - Prob. 17DQPCh. 21 - Prob. 18DQPCh. 21 - Prob. 19DQPCh. 21 - Prob. 20DQPCh. 21 - Prob. 21DQPCh. 21 - Prob. 22DQPCh. 21 - Prob. 23DQPCh. 21 - Prob. 24DQPCh. 21 - Prob. 25DQPCh. 21 - Prob. 26DQPCh. 21 - Prob. 27DQPCh. 21 - Prob. 28DQPCh. 21 - Prob. 29DQPCh. 21 - Prob. 30C
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Categorize each of the following activities into the expenditure, conversion, or revenue cycles, and identify the applicable subsystem.a. preparing the weekly payroll for manufacturing personnelb. releasing raw materials for use in the manufacturing cyclec. recording the receipt of payment for goods soldd. recording the order placed by a customere. ordering raw materialsf. determining the amount of raw materials to orderarrow_forwardThe cost accountant prepares the cost of production summary by first collecting the period’s production costs from summaries of material requisitions, payroll, and factory overhead analysis sheets. True or False?arrow_forwardWhich of the following accounts would be debited to record the factory supervisor's salary incurred during the period? Group of answer choices Salary expense Work-in-process inventory Costs of goods sold Manufacturing overheadarrow_forward
- With the aid of visual diagrams, describe in detail the audit trail for the following in a manufacturing business: Employee payroll for employee wages (using time cards or time sheets)arrow_forwardWhat document is used to determine the actual amount of direct labor to record on a job cost sheet? a. Wages payable account O b. Payroll register c. Time ticket d. Production orderarrow_forwardARE YOU RIGHT OR WRONG? 1. Ideally, each salary check was handed to the employee, who signs a receipt for it. 2. The total revenue taxes deducted from an employee's gross compensation is a business expenditure. 3. The Task in Process account is debited for the amount of direct labour (at normal rate) invoiced to the various works in progress.arrow_forward
- The Tennis Club Company makes custom tennis rackets. The manufacturing supervisor interviews people who have specialized manufacturing skills for recruitment, and he informs payroll when an employee is hired. The employees punch a card to a time clock to record the hours they work. The employees are also required to keep a record of the time they spend working on each order. The supervisor approves all time cards. The accountant analyzes the job tickets and prepares a labor distribution summary. Payroll prepares the payroll register and paychecks. The supervisor distributes the paychecks to the employees. Payroll informs cash disbursement of the funds required to cover the entire payroll amount. The cash disbursements clerk ensures that there are adequate funds in the company's regular checking account to cover the payroll. Required: 1. Identify and discuss three internal control weaknesses. 2. Suggest an improvement to internal control for each weakness.arrow_forwardIn which basic document is used to accumulate the cost of each order in job order costing? Job cost sheet Stock cards Sales Invoice Receiving reportarrow_forwardif the overtime premium is charge to specific job, it should be debited to: Work in process account Selling expense account General expense account Manufacturing overhead accountarrow_forward
- Using this supplemental information, analyze the flowchart in the diagram. The personnel department determines the wage rate of all employees. To start the process, personnel sends the payroll coordinator, George Jones, an authorization form in order to add an employee to the payroll. After Jones enters this information into the system, the computer automatically determines the overtime and shift differential rates for the individual, updating the payroll master files. Employees use a time clock to record the hours worked. Every Monday morning, George Jones collects the previous week’s time cards and begins the computerized processing of payroll information to produce paychecks the following Friday. Jones then reviews the time cards to ensure that the hours worked are correctly totaled; the system determines overtime and/or any shift differential. Jones performs all other processes displayed on the flowchart. The system automatically assigns a sequential number to each payroll check…arrow_forwardPrepare a T-account for each account on the company’s balance sheet, and enter the beginning balances. Make entries directly into the T-accounts for the transactions given above. Create new T-accounts as needed. Determine an ending balance for each T-account. Was manufacturing overhead underapplied or overapplied for the year? Assume that the company allocates any overhead balance among the Work in Process, Finished Goods, and Cost of Goods Sold accounts, using the overall balances in each account. Prepare a journal entry to show the allocation. (Round allocation percentages to one decimal place.) Prepare an income statement for the year. (Do not prepare a schedule of cost of goods manufactured; all of the information needed for the income statement is available in the T-accounts.)arrow_forwardIn a job order cost system, a credit to Work in Process Inventory will be accompanied by a debit to: *arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College
Pkg Acc Infor Systems MS VISIO CDFinanceISBN:9781133935940Author:Ulric J. GelinasPublisher:CENGAGE L
College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College
Pkg Acc Infor Systems MS VISIO CD
Finance
ISBN:9781133935940
Author:Ulric J. Gelinas
Publisher:CENGAGE L
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
Cost Accounting - Definition, Purpose, Types, How it Works?; Author: WallStreetMojo;https://www.youtube.com/watch?v=AwrwUf8vYEY;License: Standard YouTube License, CC-BY