Auditing And Assurance Services
Auditing And Assurance Services
17th Edition
ISBN: 9780134897431
Author: ARENS, Alvin A.
Publisher: PEARSON
Question
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Chapter 21, Problem 22DQP

a.

To determine

List any six or more internal controls established in the Company H relating to the inventory and warehousing cycle. Also, for each control identify a test of control that can be used to assess the effectiveness of the controls.

b.

To determine

Explain the manner in which extent of test of controls can be reduced or changed in case internal controls are found to be effective.

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Jasee Corp estimated manufacturing overhead costs for the year to be $600,000. Jasee also estimated 10,000 machine hours and 2,500 direct labor hours for the year. It bases the predetermined overhead allocation rate on machine hours. On February 28, Job 42 was completed. It required 8 machine hours and 2 direct labor hours. What is the amount of manufacturing overhead allocated to the completed job?
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