The auditor established the following information relating to the inventory count and product lines of JBU.There was no product movement on the day of the count.The loading dock is part of Warehouse A for the purposes of the count.All product lines within each storage area are on the warehouse maps.The warehouse map is reflective of the warehouse on the day of the count.Inventory values in the perpetual inventory listing are the most recent purchase price.Materiality for year-end audit $8,000Performance materiality: $5,000 Complete the inventory tasks below by using the information provided in the exhibits: In column B, quantify the required adjustment, if any, to the product line in the perpetual inventory system.Enter increases to the perpetual inventory listing as positive whole dollars.Enter decreases to the perpetual inventory listing as negative whole doIf no adjustment to the perpetual inventory listing is required, enter a zero (0). #4 - Supplier Report: Widget-Wiz CoSKU 267-3On September 25, year 4, JBU acquired 100 units of SKU 267-3 with a unit price of $7.99. Şubsequentto this acquisition, JBU sold a total of 25 units of 267-3 to third parties for $11.99, and utilized 70units of the product in the manufacture of equipment being held for sale in warehouse B.SKU 267-5The company has not made a purchase of SKU 267-5 subsequent to February, year 3. In prior years,JBU had a regular customer for this product line but during year 3, this customer became insolvent.SKU 267-1In March, year 4, JBU purchased 5,000 units of SKU 267-1. Half of the units had been used in themanufacture of equipment that has subsequently been sold. A further 30% of the units were sold tothird parties during year 4, and 5% of the units are in ending inventory. The remaining 15% of the unitswere provided to a customer on a consignment basis. As of December 31, year 4, all of the consignedgoods were sold by the customer.SKU 267-4In December, year 3, the company acquired 10,000 units of SKU 267-4 at a price of $1.56 per unit.During year 4, the company sold 5,898 units of the product to third parties. The last sale was made inNovember, year 4, with shipment that same month.#5 – Perpetual Inventory ListingPerpetual Inventory ListingLast purchaseitem cost ($)Last purchaseInventoryValue ($)ProductSKUdateItem CountWrenches583-56/3/year 412.781501,917.00Widgets - 10mm267-13/8/year 44.991,0004,990.00Bolts - % inch490-21/1/year 13.281,0323,384.96Flat washers671-012/26/year 42.6012,87133,464.60Widgets - 20mm267-39/25/year 47.99539.95Hex bolts561-39/30/year 312.899,875127,288.75Widgets - 15mm267-52/7/year 36.78Widgets - 5mm267-412/28/year 31.564,1026,399.12Copper coil290-110/15/year 43.779213,472.17Large plates352-24/16/year 410.891561,698.84Total182,655.39 #6 – Memo from Staff AccountantTo: JBU, Co. Audit FileFrom: Lily, Staff AuditorDate: December 31, year 4Subject: SKU 267-4 Widgets - 5mmI met with the controller of JBU, Co. on December 31, year 4, to resolve discrepancies between theperpetual inventory listing for SKU 267-4 and the count sheets prepared during the inventoryobservation. I then visited the warehouse again with the controller to perform a recount of theseitems. I counted 4,102 units of SKU 267-4. I validated that the perpetual inventory listing for SKU 267-4 was correct and the initial count reflected on the inventory count sheet was incorrect.

Perpetual Inventory System A perpetual inventory system updates and records the transactiion as and…

Answered: re was no product movement on the day…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The auditor established the following information relating to the inventory count and product lines of JBU.

There was no product movement on the day of the count.
The loading dock is part of Warehouse A for the purposes of the count.
All product lines within each storage area are on the warehouse maps.
The warehouse map is reflective of the warehouse on the day of the count.
Inventory values in the perpetual inventory listing are the most recent purchase price.
Materiality for year-end audit $8,000
Performance materiality: $5,000

Complete the inventory tasks below by using the information provided in the exhibits:

In column B, quantify the required adjustment, if any, to the product line in the perpetual inventory system.

Enter increases to the perpetual inventory listing as positive whole dollars.
Enter decreases to the perpetual inventory listing as negative whole do
If no adjustment to the perpetual inventory listing is required, enter a zero (0).

#4 - Supplier Report: Widget-Wiz Co
SKU 267-3
On September 25, year 4, JBU acquired 100 units of SKU 267-3 with a unit price of $7.99. Şubsequent
to this acquisition, JBU sold a total of 25 units of 267-3 to third parties for $11.99, and utilized 70
units of the product in the manufacture of equipment being held for sale in warehouse B.
SKU 267-5
The company has not made a purchase of SKU 267-5 subsequent to February, year 3. In prior years,
JBU had a regular customer for this product line but during year 3, this customer became insolvent.
SKU 267-1
In March, year 4, JBU purchased 5,000 units of SKU 267-1. Half of the units had been used in the
manufacture of equipment that has subsequently been sold. A further 30% of the units were sold to
third parties during year 4, and 5% of the units are in ending inventory. The remaining 15% of the units
were provided to a customer on a consignment basis. As of December 31, year 4, all of the consigned
goods were sold by the customer.
SKU 267-4
In December, year 3, the company acquired 10,000 units of SKU 267-4 at a price of $1.56 per unit.
During year 4, the company sold 5,898 units of the product to third parties. The last sale was made in
November, year 4, with shipment that same month.
#5 – Perpetual Inventory Listing
Perpetual Inventory Listing
Last purchase
item cost ($)
Last purchase
Inventory
Value ($)
Product
SKU
date
Item Count
Wrenches
583-5
6/3/year 4
12.78
150
1,917.00
Widgets - 10mm
267-1
3/8/year 4
4.99
1,000
4,990.00
Bolts - % inch
490-2
1/1/year 1
3.28
1,032
3,384.96
Flat washers
671-0
12/26/year 4
2.60
12,871
33,464.60
Widgets - 20mm
267-3
9/25/year 4
7.99
5
39.95
Hex bolts
561-3
9/30/year 3
12.89
9,875
127,288.75
Widgets - 15mm
267-5
2/7/year 3
6.78
Widgets - 5mm
267-4
12/28/year 3
1.56
4,102
6,399.12
Copper coil
290-1
10/15/year 4
3.77
921
3,472.17
Large plates
352-2
4/16/year 4
10.89
156
1,698.84
Total
182,655.39

#6 – Memo from Staff Accountant
To: JBU, Co. Audit File
From: Lily, Staff Auditor
Date: December 31, year 4
Subject: SKU 267-4 Widgets - 5mm
I met with the controller of JBU, Co. on December 31, year 4, to resolve discrepancies between the
perpetual inventory listing for SKU 267-4 and the count sheets prepared during the inventory
observation. I then visited the warehouse again with the controller to perform a recount of these
items. I counted 4,102 units of SKU 267-4. I validated that the perpetual inventory listing for SKU 267-
4 was correct and the initial count reflected on the inventory count sheet was incorrect.

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