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

Calculate present value-hpr and future value , Semiannual coupon = 10%*$100...

Semiannual coupon = 10%*$100/2 = $5 Since it is one-year semiannual bond, it pays two coupons, one at six months from now and the other at maturity when the bank account will be

Optical, How to combine two prisms to produce deviation without dispersion ...

How to combine two prisms to produce deviation without dispersion ?

Marginal costing , HOW DO U CALCULATE VARIABLE SELLING AND ADMINISTRATIVE ...

HOW DO U CALCULATE VARIABLE SELLING AND ADMINISTRATIVE EXPENSES IF GIVEN MARKETING COSTS ADVERTSING P6000 PER MONTH SALES PERSONNEL SALARIES AND COMMISSION R 80000 PER MONTH PLUS

Aggressive growth fund, Define Aggressive Growth Fund: A mutual fund which ...

Define Aggressive Growth Fund: A mutual fund which is primary investment intention is substantial capital gains. The return & principal value of mutual funds fluctuate with changes

The owner of the finer diner submitted a proposal, The owner of the Finer D...

The owner of the Finer Diner submitted a proposal to you in hopes of selling the business to you. His asking price is $250,000. Your financial institution advises that your month

Calculate the expected value, Imagine you are faced with the opportunity to...

Imagine you are faced with the opportunity to play two coin flips, in which you get to call heads or tails prior to the flip of a fair, two-sided coin.  (That is, heads and tails h

Payroll, is about deductions

is about deductions

Determine the probability - probability example, 1. This question has multi...

1. This question has multiple parts. For a distribution of scores with = 82 and standard deviation = 2.5, find the following: (Don't forget to sketch the normal curve to help

Motion of a plane, what is newton''s law of motion & application?

what is newton''s law of motion & application?

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