question from inventory, Basic Statistics


An audit of the accounting records of Loch Ness Ltd. for the year ending 30 June 2012 discovered that the ending inventory balance was over-valued by $35,000. Upon further investigation, it was discovered that the ending inventory for the previous year was correctly counted and valued, but that the inventory balance as at 30 June 2010 was under-valued by $90,000.
The auditor, concerned at these errors, decides to carry out a thorough investigation (audit) as to the inventory values shown in the company’s financial statements during its six-year history. The following additional errors were detected:

(i) as at 30 June 2009, inventory was over-valued by $15,000

(ii) as at 30 June 2008, inventory was under-valued by $55,000

Required :

1. Determine the effects that these errors have had on the company’s profit figures in each year, beginning in the year ended 30 June 2008.

2. Determine the effect of the inventory errors on the company’s balance sheets over the total time period. Include in your answer the cumulative impact on the company’s retained profits/earnings.
Posted Date: 4/30/2012 10:32:26 PM | Location : United States

Related Discussions:- question from inventory, Assignment Help, Ask Question on question from inventory, Get Answer, Expert's Help, question from inventory Discussions

Write discussion on question from inventory
Your posts are moderated
Related Questions
Let the national income model be: Y= c+1+G C=20+0.6y I=0.2y G=20 Where y= income, C= consumption, I= investment and G=government expenditure find y, C and I from the model. By quan

Define various methods in accounting, specifications and procedures.

Two construction contracts are to be randomly assigned to one or more of three firms. Numbering the firms I, II, and III, let X1 be the number of contracts assigned to firm I, and

do you give the answers with the way you figured the problem out?..

Federal income tax Another part of paycheck accounting involves the staff's got earnings tax. A company is necessary to hold the got earnings tax that and personnel are expecte

1. It is often a good idea to start by visualizing the data. Time series data should have "time" on the horizontal axis. What are you going to have on the vertical axis? If you use

is direct costing variable, relevant or prime costing

Base year price 10,12,18,20 and quantity 49,25,10,5 respectively. current yr quantity 50,20,12& 2