Inventory
December 31, 20X7
Test Item#	Item Description	Auditor Notes	Test Count Results:	Price Test Results (last purchased price):	Proper Action (select one):
1	Pioneer Baking Powder 6 oz.	Boxes appear dusty, sales are noted as slow moving	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
4	Pioneer Pound Cake Mix, 15 oz.	Boxes appear dented, some damage noted.	15	$1.55	Select Action
5	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.		29	$1.25	Select Action
8	Pioneer Coffee, Breakfast Blend, 12 oz.		92	$4.89	Select Action

List of Possible Actions:
A	Exception with quantity in test count; calculate the difference and propose an adjustment.
B	Exception with value in price test; calculate the difference and propose an adjustment.
C	Exception with quantity in test count and value in price test; calculate the difference and propose an adjustment.
D	Not an exception, no further audit work is necessary.
E	Follow up on valuation reduction for damaged or possible expired goods.

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) 2) Calculate the Audited Totals for each inventory items and Audit Differences (if any) in the area to the right of the client's inventory 3) Propose the Adjusting Journal Entry for the audit difference total in the area provided (use Inventory and Cost of Goods Sold accounts)