inventory, Basic Statistics

Assignment Help:
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.

Related Discussions:- inventory

Determine the payment at maturity - exchange rate, You have the following l...

You have the following limited information upon which to base your decision as to which is the better of two alternative funding arrangements:  Alternative 1 is to arrange fu

Cost behaviour, variable cost per unit remain constent why

variable cost per unit remain constent why

Concept of depreciation briefly, concept of Depreciation briefly. The pr...

concept of Depreciation briefly. The primary idea of the Depreciation is to create off the value of worried resources by a certain amount as per prescribed. Devaluation is incur

Interpret predictability and behaviou, Shafts are cut to length by two mach...

Shafts are cut to length by two machines, A and B. Each machine cuts 50 percent of all shafts in approximately the same amount of time. Machine A's shafts are all good, but Machine

Define payroll withholdings, Define Payroll Withholdings The U. S. earn...

Define Payroll Withholdings The U. S. earnings tax system-as well as most condition earnings tax systems-requires business employers to hold paycheck taxation from their staff'

Quantitative methods, which method is better for new product to gather the ...

which method is better for new product to gather the information they need,primary data or secondary data?

Chi-square Test, six subjects were exposed to 4 treatments and the followin...

six subjects were exposed to 4 treatments and the following data were recorded

Application of statistics, Mention the characteristics of Statistics. Expla...

Mention the characteristics of Statistics. Explain any two applications of Statistics

Estimate the population mean flying time for the pilots, The mean number of...

The mean number of hours of flying time for pilots at Continental Airlines is 49 hours per month (The Wall Street Journal, February 25, 2003). Assume that this mean was based on ac

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd