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

General insurance accounts preparation and Regulation of inv, X Ltd had 100...

X Ltd had 100000 9% redeemable preference shares of Rs.100 each full paid. The company decided to redeem these pref. shares at par by issue of sufficient number of equity shares of

Rolling Dice, I roll a fair die n times and don’t see the face 1 in the fir...

I roll a fair die n times and don’t see the face 1 in the first r rolls (r

Define the critical value and degrees of freedom, (3) You  generate  a  nul...

(3) You  generate  a  null  hypothesis  that  = 32.   You  draw  a  random  sample  of  size n = 28 from the population. You observe the following sample statistics: Y = 35:5 and a

Mean, It is a numerical average, as equal to the sum of terms in a given se...

It is a numerical average, as equal to the sum of terms in a given series divided by the number of terms in that series is the mean which is also called the expected value.

Estimate the probability, A football coach recorded in the practice session...

A football coach recorded in the practice sessions how many attempts were needed for a certain player to kick a field goal from the 25-yard line, and got the following numbers 3

Management accounting, 19. Welnor Industrial Gas Corporation supplies acety...

19. Welnor Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store''s operations follow: • Sales are budgeted at $320,000 fo

Distribution values, find a distribution with 10 values between 0 and 10 th...

find a distribution with 10 values between 0 and 10 that has as large a variance as possible

Depreciation, X purchased a machinery on instalment system for rs.27300 to ...

X purchased a machinery on instalment system for rs.27300 to be paid as follows. on delivery rs.8000, at the end of first year rs.7600, at the end of second years.6000, at the end

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