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

Determine the approximate vertical reactions, 1. Use the portal method to d...

1. Use the portal method to determine the approximate vertical reactions. Circles represent pinned connections. 2. A steel 2" x 3" rectangular bar is 9' long (E = 29,000ksi

N345, An HIV educator wishes to determine whether the method of delivering ...

An HIV educator wishes to determine whether the method of delivering teaching influences adherence with antiretroviral therapy. She decides to measure adherence as viral load (a r

What is AXlOM in accounting?, AXIOM, usually, it is a saying that is common...

AXIOM, usually, it is a saying that is commonly recognized on its own merits; in sense, it is an idea that is not vulnerable of confirmation or disproof; its reality is believed to

Graph, Difference between Historigrams and Histogram

Difference between Historigrams and Histogram

Allocation surrounding to accounts, Allocation surrounding to accounts An a...

Allocation surrounding to accounts An aspect of a lump-sum appropriation that is specific for expenses by particular government models and/or for particular requirements, actions,

What is an irrevocable letter of credit?, What is an irrevocable letter of ...

What is an irrevocable letter of credit? A permanent mail of credit score is a financial instrument used by banks to guarantee a customer's obligations to a supplier. It is perm

Ascertain the profit & loss, Depreciation during the financial year  The...

Depreciation during the financial year  The Resources which are bought during the economical season and its determined that the Depreciation will be incurred on them @ 10% PA it

Time series, Explain how you would decide whether to use the additive model...

Explain how you would decide whether to use the additive model or the multiplicative model to analyse a time series.

Free hand in measurig trend, advantages and disadvantages of free hand in m...

advantages and disadvantages of free hand in measurig trend

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