LUKE'S GENERAL STORE Inventory December 31, 20X7 Price Test Results Proper Action (select one): Test Test...

 

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LUKE'S GENERAL STORE Inventory December 31, 20X7 Price Test Results Proper Action (select one): Test Test Count Item Description Auditor Notes (last purchased Item# Results: price): Boxes appear dusty, sales are noted as slow moving 1 Pioneer Baking Powder 6 oz. 115 $1.15 Select Action 2 Pioneer Fine Granulated Sugar, 4-lbs. 26 $2.25 Select Action 3 Pioneer Bread Crumbs, Plain 12 oz. 21 $2.75 Select Action Boxes appear dented, some damage 4 Pioneer Pound Cake Mix, 15 oz. 15 $1.55 Select Action noted. Pioneer Baking Soda 10 oz. 48 $2.45 Select Action 6 Pioneer Balsamic Vinaigrette, 16 oz. 33 $2.89 Select Action 7 Pioneer Artichoke Hearts, 14 oz. $1.25 Select Action 8 Pioneer Coffee, Breakfast Blend, 12 oz. 92 $4.89 Select Action Instructions: You are involved with the audit of Luke's General Store and have been asked to consider the results for the test counts and price tests along with the auditor's notes (above). Review the excerpt from the client's final inventory list (top right). 1) For each audit test item above, select the proper action to be taken from the list of possible actions (at right) the Audited Totals for each inventory items and Aud Differences (if any) in the area to the right of the client's inventory 2) 3) Propose the Adjusting Journal Entry for the audit difference total in the area provided (use Inventory and Cost of Goods Sold accounts) 29 Client's Final Inventory (Excerpt): Complete below Total Audited Audit Item Description Quantity Price Inventory Total Difference Pioneer Artichoke Hearts, 14 oz. 29 $1.25 $36.25 Pioneer Baking Powder 6 oz. 115 $1.15 $132.25 Pioneer Baking Soda 10 oz. 48 $2.45 $117.60 Pioneer Balsamic Vinaigrette, 16 oz. 33 $3.89 $128.37 Pioneer Bread Crumbs, Plain 12 oz. 21 $2.75 $57.75 Pioneer Coffee, Breakfast Blend, 12 oz. 98 $4.89 $479.22 Pioneer Fine Granulated Sugar, 4-lbs. 36 $2.75 $99.00 Pioneer Pound Cake Mix, 15 oz. 15 $1.55 $23.25 List of Possible Actions: A Exception with quantity in test count; calculate the difference and propose an adjustment. Exception with value in price test; calculate the difference and propose an adjustment. Exception with quantity in test count and value in price test; calculate the difference and propose an adjustment. Not an exception, no further audit work is necessary. Follow up on valuation reduction for damaged or possible expired goods. B C D E Provide Journal Entry with Debit and Credit accounts, description and amounts below: Debit Credit LUKE'S GENERAL STORE Inventory December 31, 20X7 Price Test Results Proper Action (select one): Test Test Count Item Description Auditor Notes (last purchased Item# Results: price): Boxes appear dusty, sales are noted as slow moving 1 Pioneer Baking Powder 6 oz. 115 $1.15 Select Action 2 Pioneer Fine Granulated Sugar, 4-lbs. 26 $2.25 Select Action 3 Pioneer Bread Crumbs, Plain 12 oz. 21 $2.75 Select Action Boxes appear dented, some damage 4 Pioneer Pound Cake Mix, 15 oz. 15 $1.55 Select Action noted. Pioneer Baking Soda 10 oz. 48 $2.45 Select Action 6 Pioneer Balsamic Vinaigrette, 16 oz. 33 $2.89 Select Action 7 Pioneer Artichoke Hearts, 14 oz. $1.25 Select Action 8 Pioneer Coffee, Breakfast Blend, 12 oz. 92 $4.89 Select Action Instructions: You are involved with the audit of Luke's General Store and have been asked to consider the results for the test counts and price tests along with the auditor's notes (above). Review the excerpt from the client's final inventory list (top right). 1) For each audit test item above, select the proper action to be taken from the list of possible actions (at right) the Audited Totals for each inventory items and Aud Differences (if any) in the area to the right of the client's inventory 2) 3) Propose the Adjusting Journal Entry for the audit difference total in the area provided (use Inventory and Cost of Goods Sold accounts) 29 Client's Final Inventory (Excerpt): Complete below Total Audited Audit Item Description Quantity Price Inventory Total Difference Pioneer Artichoke Hearts, 14 oz. 29 $1.25 $36.25 Pioneer Baking Powder 6 oz. 115 $1.15 $132.25 Pioneer Baking Soda 10 oz. 48 $2.45 $117.60 Pioneer Balsamic Vinaigrette, 16 oz. 33 $3.89 $128.37 Pioneer Bread Crumbs, Plain 12 oz. 21 $2.75 $57.75 Pioneer Coffee, Breakfast Blend, 12 oz. 98 $4.89 $479.22 Pioneer Fine Granulated Sugar, 4-lbs. 36 $2.75 $99.00 Pioneer Pound Cake Mix, 15 oz. 15 $1.55 $23.25 List of Possible Actions: A Exception with quantity in test count; calculate the difference and propose an adjustment. Exception with value in price test; calculate the difference and propose an adjustment. Exception with quantity in test count and value in price test; calculate the difference and propose an adjustment. Not an exception, no further audit work is necessary. Follow up on valuation reduction for damaged or possible expired goods. B C D E Provide Journal Entry with Debit and Credit accounts, description and amounts below: Debit Credit