After preparing its draft final accounts for the year ended 30 June 20Y2 and its draft balance sheet as at 30 June 20Y2, XYZ Inc discovered that the stock lists used to compute the value of stock as at 30 June 20Y2 contained the following entry Stock item Number Cost per unit Total cost A204 200 3 10 620 Required (a) Identify the error in this entry (b) Analyze the impact of this error on (i) the stock valuation as at 30 June 20Y2 (ii) the cost of goods sold for the year ended 30 June 20Y2 (iii) the net profit for the year ended 30 June 20Y2 (iv) the Current Assets as at 30 June 20Y2 (v) the Owners Equity as at 30 June 20Y2

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Question: After preparing its draft final accounts for the year ended 30 June 20Y2 and its draft balance sheet as at 30 June 20Y2, XYZ Inc

After preparing its draft final accounts for the year ended 30 June 20Y2 and its draft balance sheet as at 30 June 20Y2, XYZ Inc discovered that the stock lists used to compute the value of stock as at 30 June 20Y2 contained the following entry:

Stock item	Number	Cost per unit	Total cost
A204	200	£3.10	£620

Required: (a) Identify the error in this entry. (b) Analyze the impact of this error on: (i) the stock valuation as at 30 June 20Y2. (ii) the cost of goods sold for the year ended 30 June 20Y2. (iii) the net profit for the year ended 30 June 20Y2. (iv) the Current Assets as at 30 June 20Y2. (v) the Owner’s Equity as at 30 June 20Y2.

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