Make a job-order cost sheet for Job A.

Question

An employee of JHT Holdings, Inc., a trucking company, was responsible for resolving roadway accident claims under $25,000. the employee created fake accident claims and wrote settlement checks of between $5,000 and $25,000 to friends or acquaintances acting as phony victims. One friend recruited subordinates at his place of work to cash some of the checks. Beyond this, the JHT employee also recruited lawyers, whom he paid to represent both the trucking company and the fake victims in the bogus accidents. When the lawyers cash the checks they allegedly split the money with the corporate JHT employee. This fraud went undetected for two years Answer the following true or false questions concerning the fraud. Frauds that are perpetrated with multiple parties in different positions of control make detecting fraud more difficult. Claims should be authorized and verified before payment is made. The employee made sure each claim had a phony victim. Corrupt lawyers were bought into the fraud…

Answer 1

Question

Chapter 4, Problem 54P

1.

To determine

Make a job-order cost sheet for Job A.

2.

To determine

Explain the reason of exclusion of overhead from the charges. Also explain the method of charging overhead to the clients by SM.

3.

To determine

Prepare a source document and make up the data that will give 510 miles driven in total on the Job A.

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An employee of JHT Holdings, Inc., a trucking company, was responsible for resolving roadway accident claims under $25,000. the employee created fake accident claims and wrote settlement checks of between $5,000 and $25,000 to friends or acquaintances acting as phony victims. One friend recruited subordinates at his place of work to cash some of the checks. Beyond this, the JHT employee also recruited lawyers, whom he paid to represent both the trucking company and the fake victims in the bogus accidents. When the lawyers cash the checks they allegedly split the money with the corporate JHT employee. This fraud went undetected for two years Answer the following true or false questions concerning the fraud. Frauds that are perpetrated with multiple parties in different positions of control make detecting fraud more difficult. Claims should be authorized and verified before payment is made. The employee made sure each claim had a phony victim. Corrupt lawyers were bought into the fraud…

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