Compute the ending inventory according to accounting records

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Reference no: EM13903382

Cost flow model. Franklin, LLP, an auditing firm, is reconstructing the records of a client called MultiChips, which is concerned that some of its inventory is missing. The accounting records provide the following information about MultiChips' inventories:

		Product
	Computer Chips	Potato Chips	Poker Chips
Beginning inventory	$ 600,000	$160,000	$ 60,000
Transfers into inventory accounts	1,600,000	600,000	200,000
Transfers out of inventory accounts from sales	1,800,000	500,000	180,000
Ending inventory	?	?	?

You physically counted the ending inventory and found it to be as follows: computer chips, $600,000; potato chips, $240,000; and poker chips, $50,000. Compute the ending inventory according to the accounting records and compare it to the physical count. What discrepancy do you find between the physical count and the accounting records, if any?

Reference no: EM13903382

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