You are auditing payroll for the Reel In Technologies company for the year ended October 31,...

 

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You are auditing payroll for the Reel In Technologies company for the year ended October 31, 2016. Included next are amounts from the client's trial balance, along with comparative audited information for the prior year. (Click the icon to view the amounts from the trial balance.) (Click the icon to view the additional information.) Requirements a. Use the final balances for the prior year and the information in items 1 through 5 to develop an expected value for each account, except sales. (Round to the nearest whole dollar.) b. Calculate the difference between your expectation and the client's recorded amount as a percentage using the formula (expected value-recorded amount)/expected value. (Round to the nearest hundredth percent, X.XX%.) (Note 1: When computing the expected value of factory hourly payroll, you must take into consideration both the 6% wage increase and the 8% increase in the number of units produced and sold. Note 2: Use the increase in the 10/31/2016 preliminary sales balance over the 10/31/2015 audited sales balance to determine the expected value for sales commissions on 10/31/2016.) Requirement a. (B) Expected Value 10/31/2016 Executive salaries Factory hourly payroll (see Note 1) Factory supervisors' salaries Office salaries Sales commissions (see Note 2) (A) Preliminary Balance 10/31/2016 629,481 11,100,499 837,567 2,713,957 3,059,893 al balance.) 7.) e informati tion and th tory hourly e over the A) ry Balanc 1/2016 629,4 11,100,4 837,4 2,713,9 3,059,8 Data Table Sales* Executive salaries Factory hourly payroll Factory supervisors' salaries Office salaries Audited Balance $ 10/31/2015 52,918,457 $ 544,881 10,399,587 759,699 2,239,582 Sales commissions 2,305,911 *Sales have increased 15% over prior year. 7% percent of that is due to an increase in the average selling price. The remaining 8% is attributed to an increase in the number of units sold. Print Preliminary Balance Done 10/31/2016 60,856,226 629,481 11,100,499 837,567 2,713,957 3,059,893 to the nearest wh int)/expected valu the number of uni 10/31/2016.) nologies company for the year ended October 31, 2016. Included next are amounts from the client's trial balance, along with comparative audited info the trial balance. ormation.) and the informati expectation and th e of factory hourly balance over the (A) eliminary Balanc 10/31/2016 629,4 11,100,4 837, 2,713,9 3,059, More Info You have obtained the following information to help you perform preliminary analytical procedures for the payroll account balances. 1. There has been a significant increase in the demand for Reel In's products. The increase in sales was due to both an increase in the average selling price of seven percent and an increase in units sold that resulted from the increased demand and an increased marketing effort. 2. Even though sales volume increased there was no addition of executives, factory supervisors, or office personnel. 3. All employees including executives, but excluding commission salespeople, received a six percent salary increase starting November 1, 2015. Commission salespeople receive their increased compensation through the increase in sales. 4. The increased number of factory hourly employees was accomplished by recalling employees that had been laid off. They receive the same wage rate as existing employees. Reel In does not permit overtime. 5. Commission salespeople receive a three percent commission on all sales on which a commission is given. Approximately 75 percent of sales earn sales commission. The other 25 percent are "call-ins," for which no commission is given. Commissions are paid in the month following the month they are earned. en click Check Answer. Print Done to the nearest whole dollar.) int)/expected value. (Round to the ne the number of units produced and sol 10/31/2016.) You are auditing payroll for the Reel In Technologies company for the year ended October 31, 2016. Included next are amounts from the client's trial balance, along with comparative audited information for the prior year. (Click the icon to view the amounts from the trial balance.) (Click the icon to view the additional information.) Requirements a. Use the final balances for the prior year and the information in items 1 through 5 to develop an expected value for each account, except sales. (Round to the nearest whole dollar.) b. Calculate the difference between your expectation and the client's recorded amount as a percentage using the formula (expected value-recorded amount)/expected value. (Round to the nearest hundredth percent, X.XX%.) (Note 1: When computing the expected value of factory hourly payroll, you must take into consideration both the 6% wage increase and the 8% increase in the number of units produced and sold. Note 2: Use the increase in the 10/31/2016 preliminary sales balance over the 10/31/2015 audited sales balance to determine the expected value for sales commissions on 10/31/2016.) Requirement a. (B) Expected Value 10/31/2016 Executive salaries Factory hourly payroll (see Note 1) Factory supervisors' salaries Office salaries Sales commissions (see Note 2) (A) Preliminary Balance 10/31/2016 629,481 11,100,499 837,567 2,713,957 3,059,893 al balance.) 7.) e informati tion and th tory hourly e over the A) ry Balanc 1/2016 629,4 11,100,4 837,4 2,713,9 3,059,8 Data Table Sales* Executive salaries Factory hourly payroll Factory supervisors' salaries Office salaries Audited Balance $ 10/31/2015 52,918,457 $ 544,881 10,399,587 759,699 2,239,582 Sales commissions 2,305,911 *Sales have increased 15% over prior year. 7% percent of that is due to an increase in the average selling price. The remaining 8% is attributed to an increase in the number of units sold. Print Preliminary Balance Done 10/31/2016 60,856,226 629,481 11,100,499 837,567 2,713,957 3,059,893 to the nearest wh int)/expected valu the number of uni 10/31/2016.) nologies company for the year ended October 31, 2016. Included next are amounts from the client's trial balance, along with comparative audited info the trial balance. ormation.) and the informati expectation and th e of factory hourly balance over the (A) eliminary Balanc 10/31/2016 629,4 11,100,4 837, 2,713,9 3,059, More Info You have obtained the following information to help you perform preliminary analytical procedures for the payroll account balances. 1. There has been a significant increase in the demand for Reel In's products. The increase in sales was due to both an increase in the average selling price of seven percent and an increase in units sold that resulted from the increased demand and an increased marketing effort. 2. Even though sales volume increased there was no addition of executives, factory supervisors, or office personnel. 3. All employees including executives, but excluding commission salespeople, received a six percent salary increase starting November 1, 2015. Commission salespeople receive their increased compensation through the increase in sales. 4. The increased number of factory hourly employees was accomplished by recalling employees that had been laid off. They receive the same wage rate as existing employees. Reel In does not permit overtime. 5. Commission salespeople receive a three percent commission on all sales on which a commission is given. Approximately 75 percent of sales earn sales commission. The other 25 percent are "call-ins," for which no commission is given. Commissions are paid in the month following the month they are earned. en click Check Answer. Print Done to the nearest whole dollar.) int)/expected value. (Round to the ne the number of units produced and sol 10/31/2016.)

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Reel in Technologies Account Executive Salaries Factory Hourly Payroll Factory Hourly Payroll Factor... View the full answer