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

Find the probability density function, The lifetime T (in days) of an elect...

The lifetime T (in days) of an electrical component has reliability function given by: R(t) = e - 0 : 01 t for time t > 0. An electrical system consists of four such component

Correlation, difference between positive and negative correlaiton

difference between positive and negative correlaiton

Cost accounting, difference between financial statement and annual report ....

difference between financial statement and annual report .

6.2, comulativefrequencydistribution

comulativefrequencydistribution

accounting, Fenn Museum, a nongovernmental not-for-profit organization, ha...

Fenn Museum, a nongovernmental not-for-profit organization, had the following balances in its statement of functional expenses: Education $300,000 Fundraising 250,000 Management an

What do you mean by purchase return, What do you mean by Purchase Return? G...

What do you mean by Purchase Return? Give an example. Ans.  Sometime the goods an organization orders are not up to the mark and they are not supposed to keep or accept so th

Calculate its stationary probabilities, A small specialized workshop is use...

A small specialized workshop is used to perform periodic check-up on some high-tech devices. The check up is made in three stages whose durations are independent random variables w

Sampling, Advantages of sampling over population

Advantages of sampling over population

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