You are auditing Inventory of HUSKY Corp. as of December 31, 2002. The inventory general ledger balance is $8,124,998.66. HUSKY manufactures lawn and garden tractors, snowmobiles, and supplies. If you have not already done so, download the data files from the Internet site http://rittenberg.swcollege.com. Import the file labeled “HUSKY 2002 Inventory.” This file contains the following information.

Sales persons receive a 10% commission based on selling price.

Required:
Using IDEA:

a. Print the field statistics and agree total inventory to the general ledger.

b. Extract and print out all inventory items that have not been used or sold in six months. Include in the printout the total extended cost of those items.

c. Extract the finished goods into a separate file (Hint: Use the function @isin (“F”,SNUMB). in the equation editor):

i. Extract those items that have a net realizable value less than cost. Append a field and calculate the amount each of those items should be written down, and print a report that includes those items and the total of the write down.
ii. Append afield and calculate inventory turnover for each item in inventory. Extract and print a report of those items with a turnover less than 2. The report should include the total extended cost of those items.

d. Extract the raw materials into a separate file (See hint above but replace “F” with a i. Extract those items that have a replacement cost less than cost, append a field and calculate the amount each of those items should be written down, and print a report that includes those items and the total of the write down.
ii. Append a field and calculate inventory turnover for each item. Extract and print a report of those items with a turnover less than 2. The report should include the total extended cost of those items.

e. Prepare a report of the audit implications of your findings, indicating any additional procedures that should be performed.

Transcribed Image Text:

SNUMB Stock number (The first letter is F-finished goods, W-work in progress, R-raw material.) LASTSALE Date of last sale (finished goods) or use (raw material) NUMSOLD Number sold (finished goods) or used (raw materials) year-to-date UNITCOST Unit cost INVQTY Quantity on hand EXTCOST SELPRICE Unit cost x Quantity on hand. Current selling price (finished goods only) REPLCOST Current replacement cost (raw material only)