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Preston, Inc., manufactures wooden shelving units for collecting and sorting mail. The company expects to produce 480 units in July and 400 units in August. Each unit requires 10 feet of wood at a cost of $1.50 per foot. Preston wants to always have 300 feet of wood on hand in materials inventory.
Compute Preston's raw materials purchases budget for July and August.
EZ Tech's sales in 2010 were $1,050,000, 80% of which were on credit. Collections on account during the year were $670,000. The company wrote off $4,000 of uncollectible accounts during the year.
Identify all risks and internal control points by incorporating the controls and risks into the flowcharts. Design internal controls to mitigate risks to the systems. Evaluate the application of internal controls to the systems.
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