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

Hypothesis and statistical test, College administrators across the country...

College administrators across the country have become very concerned after noticing an increase in the number of deaths in college students from binge drinking.  Several psychologi

Ascertainment bias, Ascertainment Bias A possible form of the bias, ma...

Ascertainment Bias A possible form of the bias, mainly in retrospective studies, which arises from a relationship amongst the exposure to the risk factor and the probability o

Normal distribution, For a normal distribution why do we calculate the prob...

For a normal distribution why do we calculate the probability of a range of numbers instead of the probability of a single number?

Statistic, difference between histogram and historigram

difference between histogram and historigram

Expansion 0f solid, state the advantage of expansion of solid

state the advantage of expansion of solid

Anova 1 and 2 way, ANOVA 1 and 2 way, t and f-tests 1,2 or more means... st...

ANOVA 1 and 2 way, t and f-tests 1,2 or more means... standard deviations known/unknown. I have a project where I must use these tests, but I''m not clear on the when and how.

Difference between estimated proportions of business owners, Question 1. In...

Question 1. In 2009, Research New Zealand conducted a survey on small businesses in New Zealand. Small businesses were defined as enterprises with 19 or fewer employees. 501 small

Basis of accounting, Basis of accounting This represents the technique and...

Basis of accounting This represents the technique and time of when income and costs or costs are acknowledged in the records and revealed in the fiscal reports. Talk about ACCRUAL

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