GEN COMBO LL PRINCIPLES OF AUDITING & OTHER ASSURANCE SERVICES; CONNECT AC
21st Edition
ISBN: 9781260427202
Author: Ray Whittington, Kurt Pany
Publisher: McGraw-Hill Education
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Question
Chapter 9A, Problem 1RQ
To determine
Explain the factors affecting
Expert Solution & Answer
Explanation of Solution
Monetary unit sampling (MUS):
Monetary unit sampling is a technique of calculation the misstatement in the population. It uses the attributes sampling theory for the calculation of the misstated value in the defined population. MUS consider the population size as a single dollar value item. It is is the total dollar value of the population.
Explain the factors affecting sample size in a monetary unit sampling (MUS):
Following are the factors affecting sample size in a monetary unit sampling (MUS):
- Book value of the population.
- Reliability factor.
- Expected misstatement.
- Tolerable misstatement.
- Expansion factor.
Thus, the above defined factors are used in the calculation of the sample size.
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Students have asked these similar questions
Hello tutor please given General accounting question answer do fast and properly explain all answer
Given below are the account balances for Redstone
Corp:
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Gross sales: $150,000
•
Sales returns and allowances: $6,000
•
Selling expenses: $15,000
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Cost of goods sold: $65,000
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Interest expense: $4,000
How much is the gross profit margin?
Techtronic Inc., a manufacturing company, has just completed an order that
Micro Solutions placed for 150 gadgets. The direct material, purchased parts, and
direct labor costs for the Micro order are as follows:
•
Cost of direct materials: $54,000
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Cost of purchased parts: $30,000
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Direct labor hours: 300 hours
•
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Average direct labor pay rate: $18 per hour
Overhead costs were applied at a plant wide overhead rate of 250 percent
of direct labor dollars.
Compute the total cost of the Micro order.
Chapter 9A Solutions
GEN COMBO LL PRINCIPLES OF AUDITING & OTHER ASSURANCE SERVICES; CONNECT AC
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