The type of audit that occurs at your home or in the business is called the field. It is because the field is the place like home or business in which the IRS goes to in means of conducting the investigation in regards with them and their tax payer.
Test of controls is when you test controls surrounding a financial process . Substantive test are performed when one tests assertions surrounding a balance.
Answer:
Please consider the following calculations
Explanation:
Expected cash collection during august =
(70000*68%+75000*20%+69000*10%) = 69.500
Expected cash disbursement during august = (53000*98%++14400) = 66.340
Expected cash balance on august 31 = (32000+69500-66340) = 35.160
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Estimated overhead costs for the year are $ 810,000, and estimated direct labor hours are 360,000.
The company incurred 20,000 direct labor hours.
First, we need to calculate the estimated overhead rate:
To calculate the estimated manufacturing overhead rate we need to use the following formula:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 810,000/360,000= $2.25 per direct labor hour
Now, we can allocate overhead based on actual direct labor hours:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 2.25*20,000= $45,000
Answer:
the Cash outflows for rent in Year 2 is $253,000
Explanation:
The computation of the Cash outflows for rent in Year 2 is shown below:
Prepaid rent at year 2 $88,000
Add: rent expense $244,000
Less: prepaid rent in year 1 -$79,000
Cash outflows for rent in year 2 $253,000
Hence, the Cash outflows for rent in Year 2 is $253,000
