es You have been assigned to select an MUS sample from Whitney Company's detailed inventory records as of September 30. Whitney's controller gave you a list of the 23 different inventory items and their recorded book amounts. The senior accountant told you to select a sample of 10 dollar units and the inventory items that contain them. ID Amount ID Amount ID Amount ID Amount 1 $1,750 7 $1,255 13 $ 937 19 $2,577 2 1,492 8 3,761 14 5,938 20 1,126 3 994 9 1,956 15 2,001 21 565 4 629 10 1,393 16 222 22 2,319 5 6 2,272 1,163 11 884 17 1,738 23 1,681 12 729 18 1,228 Required: Prepare audit documentation showing a systematic selection of 10 dollar units and the related logical units. Arrange the items in their numerical identification number order and use a random starting point at the 1,210th dollar. Recorded ID Amount Cumulative Amount 1 $ 1,750 Dollar Selected 1,210 Selected Logical Unit 2 1,492 3 994 4 629 5 2,272 6 1,163 7 1,255 8 3,761 9 1,956 10 1,393 11 884 12 729 13 937 14 5,938 15 2,001 16 222 17 1,738 18 1,228

es You have been assigned to select an MUS sample from Whitney Company's detailed inventory records as of September 30. Whitney's controller gave you a list of the 23 different inventory items and their recorded book amounts. The senior accountant told you to select a sample of 10 dollar units and the inventory items that contain them. ID Amount ID Amount ID Amount ID Amount 1 $1,750 7 $1,255 13 $ 937 19 $2,577 2 1,492 8 3,761 14 5,938 20 1,126 3 994 9 1,956 15 2,001 21 565 4 629 10 1,393 16 222 22 2,319 5 6 2,272 1,163 11 884 17 1,738 23 1,681 12 729 18 1,228 Required: Prepare audit documentation showing a systematic selection of 10 dollar units and the related logical units. Arrange the items in their numerical identification number order and use a random starting point at the 1,210th dollar. Recorded ID Amount Cumulative Amount 1 $ 1,750 Dollar Selected 1,210 Selected Logical Unit 2 1,492 3 994 4 629 5 2,272 6 1,163 7 1,255 8 3,761 9 1,956 10 1,393 11 884 12 729 13 937 14 5,938 15 2,001 16 222 17 1,738 18 1,228

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter11: Auditing Inventory, Goods And Services, And Accounts Payable: The Acquisition And Payment Cycle

Section: Chapter Questions

Problem 26RQSC

See similar textbooks

Similar questions

Tom Pryor is conducting an audit of the computerized inventory system used by Zix Corporation. Tom has inserted hypothetical data into the computer program that tracks inventory on a perpetual basis. Below are the hypotheical data inserted by Tom: Transaction Beginning inventory Purchase, day 1 Sale, day 2 Purchase, day 3. Sale, day 4 Units 10 5 669 Cost per unit $10 $11 $12 The computer program returned the following ending inventory values: FIFO perpetual, $96 LIFO perpetual, $80 Moving average, $88 Which of the three values appears to be incorrect, and what "error" might be causing this condition?
Your audit client presented the following information on December 31, 2018: Net purchases (all on account) — P2,400,000; Inventory, December 31, 2018 — P350,000. The audited balance of inventory on December 31, 2017 is P260,000. Additional information:A. The December 31, 2018 inventory balance is based on the inventory count conducted on the entity's warehouse. All inventories in the warehouse at that date were included, while inventories not in the warehouse were not included in the count. B. A purchase of inventory for P6,000 was recorded on December 28, 2018 and the goods are still in transit as of December 31. The related freight term is FOB Shipping Point. C. Goods (costing P20,000) consigned by your client to another entity are not yet sold as of December 31, 2018. No journal entry was prepared by your client upon the transfer of goods to the consignee. D. Goods costing P8,000 were sold for P15,000 on December 28, 2018. The freight term is FOB Shipping Point.E. A purchase of…
Tracing the Inventory Count. You have been assigned to trace the results of the observation of Brightware China’s physical inventory count to its pricing and compilation. You note the following conditions.1. The last inventory tag documented by Mark Hulse, the auditor who observed the inventory, was 1732, but you notice a number of items with count ticket numbers higher than 1732. You contact the client’s controller, Marcia Vines, who tells you the client found a storage room full of a new product that Brightware had just produced and added it to the inventory. 2. The count tickets recorded by Hulse agree to the inventory list, but some of the other count tickets you select are substantially different from it. Vines tells you these are input errors and she will have them corrected. 3. Hulse described several boxes of goods as being dusty and even broken. They are included in the inventory at cost. Vines’s explanation is that china never “goes bad” and the goods themselves were not…
Note:- • Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. • Answer completely. • You will get up vote for sure.
The followings are 6 audit procedures that were performed in an audit of inventory. Compare the quantities on hand and unit prices on this year’s inventory count sheets with those in the preceding year as a test for large differences. Trail selected quantities from the inventory list to the physical inventory to make sure that it exists, and the quantities are the same. Test the extension of unit prices times quantity on the inventory list for a sample of inventory items, test foot the list, and compare the total to the general ledger. Send letters directly to third parties who hold the client’s inventory, and request that they respond directly to the auditors. Interview the operating personnel regarding the possibility of obsolete or slow-moving inventory. Examine sales invoices and contracts with customers to determine whether any goods are out on consignment with customers. Similarly, examine vendors’ invoices and contracts with vendors to determine whether any goods on the…
Use the information provided in the exhibits to calculate the inventory amounts as they should be reported in the financial statements prepared under U.S. GAAP and IFRS. Enter the appropriate amounts in the associated cells. Enter all amounts as positive values. Round all amounts to the nearest whole number. The following data pertain to Company A’s inventory that was purchased on January 5, Year 1, for $40,000: March 31, Year 1 June 30, Year 1 December 31, Year 1 Estimated selling price $42,000 $44,000 $41,000 Cost of disposal 2,000 2,000 2,500 Normal profit margin 1,200 1,400 1,100 Cost of completion 1,000 1,000 1,000 Current replacement cost 38,000 42,000 36,000 Note: Entire inventory was sold on May 1, Year 2. Company Seeks to Go Global Company A is a publicly traded company that reports interim financial statements on a quarterly basis. Until recently, that is all that Company A has…
Can you please do all four parts the Specific Id and the Weighted Average and FIFO AND LIFO thank you
can you please check to see if i did the journal entries correctly? The following inventory transactions occurred at Zapata, Inc., which uses a perpetual inventory system: October 2 Purchased 50 units of inventory from a supplier on credit. The goods cost $30 each and the credit terms were 2/10, n/30. The shipping costs were $100 under the terms FOB destination and Zapata received the inventory on October 3rd. October 4 Returned 5 units of inventory from the October 2nd transaction to the supplier. October 6 Sold 15 of the units purchased on October 2nd for $50 each to customers for cash. October 7 October 10 Accepted a return of one unit of inventory from an October 6th customer for a cash refund. Established a petty cash fund for $300. October 11 October 15 October 28 Paid the supplier for one-half of the inventory purchased on October 2nd, net of any returns. Used $20 out of petty cash to pay for stamps (postage expense). Purchased 10 units of…
A review of the accounting records of the Danzee Company yields the following information concerning inventory: Jan. 1, 500 units at $6.00 Mar. 28, purchase 600 units at $7.00 May 15, purchase 700 units at $8.00 July 6, purchase 400 units at $7.50 Oct. 19, purchase 350 units at $8.50 On December 31, a physical inventory was taken and showed 600 units on hand REQUIRED:Assuming a periodic inventory system, compute the dollar value of ending inventory using (A) FIFO; (B) LIFO; (C) weighed average. B) FIFIO - $4,850 LFI - $3,800 Average - $4,416 A) FIFIO - $4,875 LFI - $3,700 Average - $4,500
Reggie Company has just completed a physical inventory count at year-end, December 31, 2020. Only the items on the shelves, in storage, and in the receiving area were counted and costed on a FIFO basis. The inventory amounted to $65,000. During the audit, the auditor developed the following additional information: a. Goods costing $750 were being used by a customer on a trial basis and were excluded from the inventory count at December 31, 2020. b. Goods costing $900 were in transit to Reggie on December 31, 2020, with terms F.O.B. destination (explained below). Because these goods had not arrived, they were excluded from the physical inventory count. c. On December 31, 2020, goods in transit to customers, with terms F.O.B. shipping point, amounted to $1,300 (the expected delivery date was January 10, 2021), Because the goods had been shipped, they were excluded from the physical inventory count. d. On December 28, 2020, a customer purchased goods for $2,650 cash and left them "for…
You are requested by a client on September 28 to prepare an insurance claim for a theft loss that occurred on that day. You immediately take an inventory and obtain the following data: 1. Compute the inventory lost during the theft. Round the gross profit percentage to 3 decimal places. 2. Next Level What concerns might you lhave about the inventory estimation under the gross profit method?
can you help me write journal entries for these transactions please... The following inventory transactions occurred at Zapata, Inc., which uses a perpetual inventory system: October 2 Purchased 50 units of inventory from a supplier on credit. The goods cost $30 each and the credit terms were 2/10, n/30. The shipping costs were $100 under the terms FOB destination and Zapata received the inventory on October 3rd. October 4 Returned 5 units of inventory from the October 2nd transaction to the supplier. October 6 Sold 15 of the units purchased on October 2nd for $50 each to customers for cash. October 7 October 10 Accepted a return of one unit of inventory from an October 6th customer for a cash refund. Established a petty cash fund for $300. October 11 October 15 October 28 Paid the supplier for one-half of the inventory purchased on October 2nd, net of any returns. Used $20 out of petty cash to pay for stamps (postage expense). Purchased 10 units…