1. Internal Controls are required to safeguard assets and to ensure ethical business practices. (1) Identify and explain the reason for any two of the seven internal control procedures (10 points) and (2) provide examples of how your two selected internal control procedures will meet the goal of safeguarding assets and promoting ethical business practices. 2)The bank account as a control device helps to protect cash. One of the requirements is to conduct periodic bank statement reconciliations. Using the following data, complete the bank statement reconciliation. (Use the format shown) Prepare a bank reconciliation using B & B’s Restaurant Supply Inc.’s information for August 31. A NSF check from Johnny Jones for $3,164. Two deposits made on August 31 were not on the bank statement, totaling $2,897. The bank collected an EFT payment for Rent for $2,600. August 31 balance in Cash was $2,005. The owner had written check # 1598 for $500 and recorded this check as $5,000. The balance on the bank statement as of August 31 was $5,316. Bank service charge of $28 was shown on the bank statement. Checks #1572, 1606, 1116, and 1242 for $419, $126, $650, and $1,105, respectively, were not shown on the bank statement, even though the company had sent the checks.
Cost Management: A Strategic Emphasis
Title: Cost Management: A Strategic Emphasis Author: Blocher, Stout & Cokins ISBN: 978-0-07-352694-2 Publisher: McGraw-Hill/Irwin Application of Factory Overhead Tomek Company uses a job costing system that applies factory overhead on the basis of direct labor-hours. The company’s factory overhead budget for 2010 included the following estimates: Budgeted total factory overhead $568,000 Budgeted total direct labor-hours 71,000 blo26940_ch04_091-126.indd 112 blo26940_ch04_091-126.indd 112 6/9/09 2:23:01 PM 6/9/09 2:23:01 PM Confirming Pages Chapter 4 Job Costing 113 At the end of the year, the company shows these results: Actual factory overhead $582,250 Actual direct labor-hours 71,500 The following amounts of the year’s applied factory overhead remained in the various manufacturing accounts: Applied Factory Overhead Work-in-process inventory $139,000 Finished goods inventory 216,840 Cost of goods sold 200,160 Required 1. Compute the firm’s predet...
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