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

Homework, 9. From 11 positive integer scores on a 10-point quiz, the mean i...

9. From 11 positive integer scores on a 10-point quiz, the mean is 8, the median is 8, and the mode is 7. Find the maximum number of perfect scores possible on this test.

Probability, If there are 12 numbered balls in a basket (0-11), and you get...

If there are 12 numbered balls in a basket (0-11), and you get 6 chances to pick a ball what are the odds to get two of the same number, 3 of the same number, 4, 5 and 6. I would

Project, The trial balance of the Parton Wholesale Company contained the fo...

The trial balance of the Parton Wholesale Company contained the following accounts at December 31, 2010 the end of the company’s calendar year. PARTON WHOLESALE COMPANY Trial Bala

Cost inventory, how do I find the cost of inventory?

how do I find the cost of inventory?

Simple Linear Regression, One measure of the risk or volatility of an indiv...

One measure of the risk or volatility of an individual stock is the standard deviation of the total return (capital appreciation plus dividends) over several periods of time. Altho

Average Speed in Various Cases, Define Average Speed in Various Cases (a) ...

Define Average Speed in Various Cases (a) Particles covering different distances in different times say a particle covers s1 distance in time t1 ,s2 in time t2, s3 in time t3 and

Why do jovian planets have rings, Why do Jovian planets have rings? - Ring...

Why do Jovian planets have rings? - Ring particles cannot have lasted for billions of years so the particles we see today must have been created recently. - New ring particles

Comparing Two Samples, Ask qComparing Two Samples: 1. Apply the function "p...

Ask qComparing Two Samples: 1. Apply the function "plot" to the formula that relates the response "frequency" to the explanatory variable "march2007" in order to produce the two bo

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