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

Joy, Ask questio How many women must be randomly selected to estimate the m...

Ask questio How many women must be randomly selected to estimate the mean weight of women in one age group? We want 90% confidence that the sample mean is within 3.7 lbs of the po

Assignment , assume that your group is incorporating a business organizatio...

assume that your group is incorporating a business organization. you are required to present a detailed structure, business environment and organizational structure of the entity.

Regresion analysis, If the regression line is drawn as Y = C + 1075x, when ...

If the regression line is drawn as Y = C + 1075x, when X was 2 and y was 239, given that the intercept was 11. Calculate the residual

Pearsons chi square, difference between tests of goodness of fit & tests of...

difference between tests of goodness of fit & tests of independence

Accounting standards aims and objectives, Accounting Standards Aims and Obj...

Accounting Standards Aims and Objectives:  The aim of this report is to understand the various changes that have taken place in the accounting standards in various countries since

Compute the value of beta - simple linear regression , Simple Linear Regres...

Simple Linear Regression One measure of the risk or volatility of an individual stock is the standard deviation of the total return (capital appreciation plus dividends) over

HYPOTHESIS TESTING, The fluctuations in the stock market induce some invest...

The fluctuations in the stock market induce some investors to sell and move their money into more stable investments. To determine the degree to which recent fluctuation affected o

Perform multiple regression, You have collected data on 4 continuous variab...

You have collected data on 4 continuous variables (diastolic BP, age, weight, and average number of minute of exercise per week)you think may be related to total cholesterol levels

Association of Attributes, In an examination 600 candidates appeared, boys ...

In an examination 600 candidates appeared, boys outnumbered girls by 16% of all candidates. number of passed candidates exceeded the number of failed candidates by 310. Boys failin

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