It is B. and now i have to type more to get this answer posted
Loan investment account.. can be either side of the account depending on how the accountant set up the system
Answer:
1. Once a month, the sales department sends sales invoices to the accounting department to be recorded.
⇒ documentation procedures
Unless all of the company's sales take place only once a month, sales should be recorded as soon as possible. Accounting records must be as precise and accurate as possible, and they must be processed on time. Stacking invoices makes no sense, since sales might be on cash or the collection period might be very short. Who holds the money until the sales records are made?
2. Leah Hutcherson orders merchandise for Rice Lake Company; she also receives merchandise and authorizes payment for merchandise.
⇒ segregation of duties
One single person cannot be responsible for the whole process, since this creates a huge opportunity for fraud. Imagine if the person in charge of the inventory is also in charge of making new purchases, paying for them and reporting ending inventory. No company would be able survive one year, while the person in charge would get rich.
3. Several clerks at Great Foods use the same cash register drawer
⇒ establishment of responsibility
If everyone is allowed to collect money, no one can be responsible for any loss.
Answer:
1. February – Budgeted direct labor hours = 378; Budgeted direct labor cost = $3,024.
2. March – Budgeted direct labor hours = 413; Budgeted direct labor cost = $3,304.
Explanation:
1. February direct labor budget:
a. Number of direct labor-hours budgeted for February = 0.07 * 5,400 = 378 labor hours
b. February budgeted direct labor cost = 378 * $8.00 = $3,024
2. March direct labor budget:
a. Number of direct labor-hours budgeted March = 0.07 * 5,900 = 413 labor hours
b. March budgeted direct labor cost = 413 * $8.00 = $3,304.00