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

Linear programming., what are the requirements of linear programming?

what are the requirements of linear programming?

Explain accounting Accumulated depreciation , A contra-asset assessment con...

A contra-asset assessment consideration used to history the buildup of regular credit created to indicate the conclusion of the approximated useful life of investment resources.

Quantitative methods, which method is better for new product to gather the ...

which method is better for new product to gather the information they need,primary data or secondary data?

Clearing account, Clearing account An account used to build up entire char...

Clearing account An account used to build up entire charges, credits so that they can be disseminated later amongst the accounts to which they are allocable, so that the net diffe

Governmental Accounting, The fund statements for gorvernmental funds should...

The fund statements for gorvernmental funds should include a? A. Balance sheet for governmental funds. B. Statement of revenues,expenses, and changes in fund net assets. C.Statemen

Determine the simple linear regression model, You have collected data from ...

You have collected data from the factory on a critical to quality attribute. The attached Excel spreadsheet lists the response, Y and four potential predictors. You would like to m

Examine group profiles and report the descriptive statistic, Use your data ...

Use your data to perform the following tasks. 1.  Based on the variables, construct a design that consists only main effects of one categorical IV and at least two continuous DV

Determine the relative strength, The results of a study using focused compa...

The results of a study using focused comparison techniques showed that two independent variables distinguished between successful and unsuccessful negotiations with the US on secur

What is bond premium and face value of bond, Defining of bond premium in te...

Defining of bond premium in terms of the amount paid over the face value of the bond. And the amount over and above the Face Value of bond which the purchaser pays is called Bond P

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