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3 years ago

Which of the following matters would an auditor most likely communicate to those charged with governance?

Business

1 answer:

blagie [28]3 years ago

6 0

Answer:

C. The effects of significant accounting policies adopted by management in emerging areas for which no authoritative guidance exists.

Explanation:

Financial auditors are ones that are involved in reviewing of financial statements as well documents or data of a company or organization. Information is gathered from financial reporting systems, balance sheet and other data's of the company. It should be noted that an auditor would most likely communicate the effects of significant accounting policies adopted by management in emerging areas for which no authoritative guidance exists

to those charged with governance

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Prior to the beginning of 2019, Lowe Company estimated that it would incur $176,000 of manufacturing overhead cost during 2019,

adelina 88 [10]

Answer:

raw materials 39,000 debit

accounts payable 39,000 credit

WIP inventory 31,000 debit

factor overhead 11,000 debit

raw materials 42,000 credit

WIP materials 108,000 debit

factory overhead 27,000 debit

wages payable 135,000 credit

WIP invenotry 165,000 debit

factory overhead 165,000 credit

factory overhead 92,000 debit

accounts payable 92,000 credit

factory overhead 35,000 debit

cost of goods sold 35,000 credit

Questions:

a. Purchased materials on account, $39,000.

b. Of the total dollar value of materials used, $31,000 represented direct material and $11,000 indirect material.

c. Determined total factory labor, $135,000 (15,000 hrs. @ $9/hr.)

d. Of the factory labor, 80% was direct and 20% indirect.

e. Applied manufacturing overhead based on direct labor hours to work in process.

f. Determined actual manufacturing overhead other than those items already recorded, $92,000. (Credit Accounts Payable.)

Explanation:

predetermined overhead rate:

expected overhead / expeected labor hours

176,000 / 16,000 = $11

applied 15,000 x $11 = 165,000

factory overhead reconciliaiton:

92,000 + 27,000 + 11,000 = 130,000

applied 165,000

overapplied by 35,000

4 0

3 years ago

For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions):Sales $38,800Food and pac

Julli [10]

Answer:

a. The Company's contribution margin is $10,476 millions

b. The Company's contribution margin ratio is 27%

c. The Income from operations will increase $621 millions

Explanation:

In order to calculate Wicker Company's contribution margin we have to use the following formula:

contribution margin=Sales- Variable costs

Sales=$38,800 millions

Variable costs=Food and packaging+Payroll+40%General, selling, and administrative expenses

Hence, Variable costs=$16,284+$9,800+40%($5,600)=$28,324 millions

a. Therefore, contribution margin=$38,800-$28,324=$10,476 millions

In order to calculate the contribution margin ratio we would have to use the following formula:

contribution margin ratio=contribution margin × 100

Sales

contribution margin ratio=$10,476 × 100

$38,800 millions

b. contribution margin ratio=27%

In order to calculate how much would income from operations increase if same-store sales increased by $2,300 million for the coming year, with no change in the contribution margin ratio or fixed costs, we have to make the followinf calculation:

$2,300 million×0.27=$621 millions

c. Income from operations will increase $621 millions

5 0

4 years ago

On December 31, 2019, the Income Statement section of the worksheet for Capeletti Distributors contained the following informati

Yuliya22 [10]

Explanation:

The closing journal entries are as follows

1. Sales $249,500

Interest Income $120

Purchases Returns and Allowances $1,500

Purchases Discounts $1,430

To Income Summary $252,550

(Being revenue account closed)

2. Income summary A/c Dr $227,280

To Sales Returns and Allowances $3,400

To Sales Discounts $2,400

To Purchases $133,400

To Freight In $1,700

To Rent Expense $8,000

To Utilities Expense $2,830

To Telephone Expense $1,440

To Salaries Expense $65,100

To Payroll Taxes Expense $5,170

To Supplies Expense $1,600

To Depreciation Expense $2,000

To Interest Expense $240

(Being expenses accounts are closed)

3. Income summary A/c Dr $28,570

To John Capeletti, Capital $28,570

(Being the net income is closed)

The calculation is shown below:

= $40,900 + $252,550 - $227,280 - $37,600

= $28,570

4. John Capeletti, Capital $25,700

To John Capeletti, Drawings $25,700

(Being drawing account is closed)

7 0

3 years ago

The classical dichotomy is the separation of real and nominal variables. The following questions test your understanding of this

Alborosie

Answer:

Nominal variable - Price of a donut is $3.00 in 2008

Real variable- Price of a magazine is 3 donuts in 2008.

Explanation:

In 2008 the price of a magazine was $9.00. While the price of a donut was $3.00. Deborah's income was $27.00 per hour.

Nominal variable's are those which are expressed in terms of money. While, real variables are those variables which are expressed in terms of other goods or services.

The nominal variables will include:

a. The price of a donut is $3.00 in 2008.

The other two options are not nominal variables as they are expressed in terms of the other variable.

The following variables give us the real value of a variable:

b. The price of a magazine is 3 donuts in 2008.

Deborah's wage and price of a magazine are both nominal variables. They are not expressed in terms of any other variable.

In 2013, Deborah's wage is $54.00. The price of a magazine is $18.00 and price of a donut is $6.00.

Relative price is the price price of a good expressed in terms of the other good. The price of magazine in 2013 is $18.00. While, price of donut is $6.00.

$Relative price = \frac{Price of a magazine}{Price of a donut} \\ = \frac{18}{6}\\ = 3$

Thus, in 2013, the relative price of a magazine is 3 donuts.

As can be seen that from 2008 - 2013, the wage doubles. But at the same time the price of both magazine and donuts also doubles. This can be seen from the relative purchasing power of income. So, between 2008-2013 the nominal value of wage increased and the real value of her wage remained the same.

Monetary neutrality is the proposition that a change in the money supply affects nominal variables and does not affect real variables.

8 0

3 years ago

You purchased shares of Broussard Company using 50 percent margin; you invested a total of $20,000 (buying 1,000 shares at a pri

IceJOKER [234]

Answer:

My percentage profit is 15%

Explanation:

Total investment = $20 × 1000 = $20,000

Rise in value of investment = $23 × 1000 = $23,000

Profit = $23,000 - $20,000 = $3,000

Percentage profit = profit/total investment × 100 = $3,000/$20,000 × 100 = 15%

3 0

4 years ago