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I am having difficulties trying to figure out the calculation for expected factory payroll. I am not sure what I am doing wrong. Audited Bal Prelim.

I am having difficulties trying to figure out the calculation for expected factory payroll. I am not sure what I am doing wrong.


Audited Bal Prelim. Bal.

10/31/2015 10/31/2016

Sales 58,583,900 63,856,451

Exec. Sal 570,004 609,312

Fact. Payroll 770,600 770,600

Office Sal 2.003,912 2,515,983

Sales Comm 2,503,913 2,660,499


You have obtained the following information to help you perform preliminary analytical procedures for the payroll account balances.

1.

There has been a significant increase in the demand for Sandy Lane


Sandy Lane​'s products. The increase in sales was due to both an increase in the average selling price of six


six percent and an increase in units sold that resulted from the increased demand and an increased marketing effort.

2.

Even though sales volume increased there was no addition of​ executives, factory​ supervisors, or office personnel.

3.

All employees including​ executives, but excluding commission​ salespeople, received a seven


seven percent salary increase starting November​ 1, 2015


2015. Commission salespeople receive their increased compensation through the increase in sales.

4.

The increased number of factory hourly employees was accomplished by recalling employees that had been laid off. They receive the same wage rate as existing employees. Sandy Lane


Sandy Lane does not permit overtime.

5.

Commission salespeople receive a five


five percent commission on all sales on which a commission is given. Approximately 90


90 percent of sales earn sales commission. The other 10


10 percent are​ "call-ins," for which no commission is given. Commissions are paid in the month following the month they are earned.

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