Clark Paints: The production department has been investigating possible ways to trim total
production costs. One possibility currently being examined is to make the paint cans instead of
purchasing them. The equipment needed would cost $200,000 with a dis
Practice Midterm Solutions
Page 1
1.
2.
3.
4.
B
B
D
C
Page 2
1.
2.
3.
4.
B
A
E
B
Page 3
Beca Company
Schedule of Cost of Goods Manufactured
Direct Materials:
Beginning raw materials inventory
Add: Purchases of raw materials
Raw materials available for use
Week 7 HW Solutions
3-23 a. (2)
b.
(3)
c.
(3)
3-24
(4)
c.
(1)
a.
3-25 a.
3-27 a.
(3)
b.
(2)
b. (3)
c. (3)
Items that need not be included in the auditor's report are:
1.
That Optima is presenting comparative financial statements. (Both
years' statements w
Week 6 HW Solutions
15-22 a. (1)
b.
(3)
c.
(2)
d.
(4)
15-23
a.
(1)
b.
(3)
c.
(4)
d.
(4)
15-24
15-25
a.
a.
(4)
b.
(3)
c.
(2)
SAMPLING
UNIT
NUMBERING
SYSTEM
FOR THE
POPULATION
EXCEL SELECTION
FORMULA
1.
Sales
invoice
All invoices
numbered 0001 to
6211
=RAND
Week 5 HW Solutions
13-22 a. (2)
b.
(2)
c.
(1)
d.
(4)
13-23
(3)
c.
(1)
d.
(3)
a.
(2)
b.
Discussion Questions and Problems
13-24
a.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
b.
TD of B
TD of B
AP
T of C
ST of T
AP
TD of B
T of C
TD of B
T of C
T of C
Recalculatio
Week 4 HW Solutions
10-30 a. (3)
b.
(3)
c.
(4)
d.
(4)
10-31
a.
(3)
b.
(2)
c.
(4)
d.
(2)
10-32
a.
(3)
b.
(4)
c.
(4)
d.
(2)
Discussion Questions and Problems
10-33
1.
a.
b.
c.
d.
e.
2.
a.
b.
c.
d.
e.
3.
a.
b.
c.
d.
e.
4.
a.
b.
c.
d.
Adequate segregation of
Week 2 HW Solutions
5-16 a. (2)
b.
(1)
c.
(2)
d.
(2)
5-17 a. (3)
b. (4)
c. (1)
5-20 The answers provided in this section are based on the assumption that the
traditional legal relationship exists between the CPA firm and the third party user. That
is, the
Week 1 HW Solutions
1-14 a.
(3)
b.
(2)
c.
(2)
d.
(3)
1-15 a.
(2)
b.
(3)
c.
(4)
d.
(3)
1-21 The most likely type of auditor and the type of audit for each of the examples are:
EXAMPLE
TYPE OF AUDIT
IRS
GAO
Internal auditor or CPA
CPA or Internal auditor
GA