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Internal Controls
Problem 1: Identify the control procedure violated in each of the following scenarios:
a. Todd Leone is the accounting clerk for Home Chic, a small boutique retail store that is owned and operated by Al Dente. Al does not care much for the accounting side of the business and allows Todd to make all payments to the company's suppliers. Todd pays all invoices that Home Chic receives. Al does not review the payments Todd makes.
Calculate the cost of the 27,600 equivalent units that were produced during the year. Calculate the cost of the ending finished goods inventory.
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Show and calculate the cost of goods sold account. Assuming underapplied or overapplied overhead is transferred to cost of goods sold at the end of the period.
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