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

Statistics for management, characteristics of statistics and any two applic...

characteristics of statistics and any two application of statistics

Is venus geologically active, Is Venus geologically active? -It is almost ...

Is Venus geologically active? -It is almost certain that Venus, a planet almost of the same size as earth is geologically active. Recent studies show that there is Volcanic and t

Accounting standards in united states, United States: There are currently ...

United States: There are currently more than 10000 companies that are registered with the SEC (Securities Exchange Commission). Of these, around 1000 are non US companies. The non

Frequency distribution, What happens to the arithmetic mean when you add th...

What happens to the arithmetic mean when you add the same number to all the scores of the distribution?

Quartiles and percentiles, Quartiles and Percentiles Percentile can ...

Quartiles and Percentiles Percentile can be explained as : a measure this tells us what is the percent of the total frequency scored at or below the measure. Quartiles

What is a Business-type activity, What is a Business-type activity Reporte...

What is a Business-type activity Reported in the government-wide financial statements. Financed in whole or in part by fees charged to external parties for goods or services that

Three major accounts and their rules, Three major Accounts and their Rules ...

Three major Accounts and their Rules There are three major Records which are a) Personal Accounts b) Real Accounts c) Moderate Accounts Rule for Personal Account: Ch

Descriptive analysis , All Excel output should be copied into a single Word...

All Excel output should be copied into a single Word document where you must enter all of your responses to the questions below. Format the document professionally so it flows well

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