AP7-12A (Inventory errors) Chiang's staff made a number of errors related to inventory, which follow 1. Raw materials that were in transit at year end were excluded from inventory. The goods had been purchased FOB shipping point. The transaction has not been recorded. 2. Some goods were damaged after a leak in the warehouse, but were not written down to their NRV (which was lower than their cost) 3. Goods held on consignment for another company were included in Chiang's inventory. 4. Some goods were double-counted during the inventory count