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

What is the net book value of a noncurrent asset, What is a sole proprietor...

What is a sole proprietorship? A sole proprietorship is a form of business organization that is owned by one person. The owner is referred to as a sole proprietor. In accoun

Classification of raw data with example tables, Classification of raw data ...

Classification of raw data on the basis of homogeneous characteristics

Prepare journal entries, Quick Company acquired a piece of equipment in Yea...

Quick Company acquired a piece of equipment in Year 1 st cost $100,000. The equipment has a 10-year estimated life, zero salvage value and a depreciation of a straight line basis.

Find a p-value from a t-test, A random sample of 321 New Jersey and 77 Penn...

A random sample of 321 New Jersey and 77 Pennsylvania fast-food restaurants was selected from those fast-food restaurants in this study.  The restaurants were categorised into two

Calculate the monopoly profits and probability , Each firm in a competitive...

Each firm in a competitive research industry can undertake one project at a constant cost, f = $960 to try and develop a certain new product. The inverse demand curve for the new

Explain what is signal reliability ration, A. If CD players are able to use...

A. If CD players are able to use the LDD strategy better than pure chance then explain what happens to the signal reliability ration as a CD player detects more cautiously B. As

Free hand in measurig trend, advantages and disadvantages of free hand in m...

advantages and disadvantages of free hand in measurig trend

Sampling errors, what are the types of sampling errors and their causes?

what are the types of sampling errors and their causes?

What is cut-off date, What is cut-off date A chosen manually date whereby ...

What is cut-off date A chosen manually date whereby transactions usually are stopped to give for closing of the books of accounts for a known period: for audit purposes,

What is an irrevocable letter of credit?, What is an irrevocable letter of ...

What is an irrevocable letter of credit? A permanent mail of credit score is a financial instrument used by banks to guarantee a customer's obligations to a supplier. It is perm

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