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Silo Company's assembly department had 7,000 units in beginning inventory. Associated with these units were $67,250 in direct materials and $85,000 in conversion costs. During the period, the department incurred $163,750 in direct materials and $337,500 in conversion costs and started 60,000 units. Ending inventory consisted of 5,000 units which were 80% complete with respect to materials and 60% complete with respect to conversion costs.
What is the difference between the auditor's approach in verifying sales returns and allowances and sales? Why is there a difference?
Donald Tweedt started a company to produce and distribute natural fertilizers. Donald's company sells two fertilizers that are wildly popular: green fertilizer and compost fertilizer.
Hope mistakenly accounted for the investment as available for sale instead of using the equity method. What effect would this error have on the investment account and net income, respectively, for 2011?
What kind of situation would make guaranteed payments a logical way of starting a two-person partnership?
In what types of situations could it be appropriate to use equity-method reporting even though the investor does not hold voting common stock of the investee? Explain.
Which of the following statements correctly describes the proper accounting for nonmonetary exchanges that are deemed to have commercial substance?
A company grosses $100 million per year and shows a 12 percent profit. It hires a security director, a security staff, and security equipment, which costs the company $2 million per year but reduces its losses, or "shrinkage," from 9 percent to 5 ..
A house worth $70,000 is purchased with a down payment of $20,000 and a mortgage amortized over 20 years. If the interest rate is 14% compounded semi- annually;
What would the PMPM cost of the HMO be? What would have to be charged to the patient/employer if the HMO had administrative costs equaling 10 percent of its costs and it wanted a profit margin of 7 percent?
The following documents are used in the revenue cycle: - Customer order - Sales order - Sales invoice - Credit memo
For many months your prospective ERP customer has been analyzing the hundreds of assumptions built into the $800,000 ERP software you are selling. So far, you have knocked yourself out to try to make this sale.
Which of the following is not a required consideration regarding due professional care when choosing to perform an internal auditing consulting engagement?
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