17E MANAGERIAL ACCOUNTING CUSTOM
17E MANAGERIAL ACCOUNTING CUSTOM
17th Edition
ISBN: 9781266776328
Author: Garrison
Publisher: MCG
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Chapter 3, Problem 8F15
To determine

Total amount of actual manufacturing overhead:

Actual manufacturing overhead cost is the cost actually incurred by the company for the manufacturing the goods. The total amount of actual manufacturing overhead includes actual indirect labor cost, actual indirect materials and actual various over head costs.

Actual manufacturing overhead cost.

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You are employed by an external audit firm that is hired by JBltd, a privately owned incorporated business. Accounting records are maintained on a computer using proprietary software. You have worked on the audit for three years and this year you are in charge of the audit. Your assistant is a newly recruited business graduate who has done an accounting course but has no practical experience. Because of the small size of the company there is limited opportunity for segregation of duties. You decide, as in previous years, that the appropriate audit strategy is to obtain evidence primarily through the performance of substantive procedures. You also plan to perform the audit around the computer as the proprietary software is known to be reliable and details of all transactions and balances can be readily printed out. On arriving at the company's premises in December 2019 to perform the final audit on the 31 October 2019 financial statements, you obtain a copy of the year end bank…
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17E MANAGERIAL ACCOUNTING CUSTOM

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