Inventory Write-off Due to the shortage of staff, the PP accountant admitted that there was no...

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Inventory Write-off Due to the shortage of staff, the PP accountant admitted that there was no time to figure out the value of obsolete inventory. She simply applied prior year's percentages to the December 31, 2022 yearend inventory balance. The table below is an excerpt of the piano parts inventory subledger at December 31, 2020, 2021 and 2022 and the amount of inventory written off each year for piano parts only. Excerpts of Piano Parts Inventory 2020, 2021 and 2022 All Values in Canadian Dollars Inventory Part Name Lid Cast Iron Plate Sound Board Treble Strings Tuning pins Keyboard Wheels Pedals Legs Hammers Cost Quantity per on Unit $ Hand 20,000 7 2,500 7 30,000 8 5,000 22 1,200 190 40,000 7 500 40 4,000 60 7,000 24 800 9,000 20 December 31, 2020 120 Total Inventory Quantity Inventory write off on Value $ $ Hand 140,000 17,500 240,000 110,000 228,000 20,000 Bass strings Total "Calculated by multiplying quantity on hand x cost **Estimate based on write-off percentages from 2019 (2.5%) and 2020 (3%). - - 10,000 4,800 280,000 20,000 240,000 168,000 96,000 180,000 1,719,500 43,100 500 . 7,000 800 8 8 8 20 198 8 36 60 24 112 December 31, 2021 20 Total Inventory Value * $ 160,000 20,000 Inventory write off $ 18,000 2,500 240,000 100,000 15,000 237,600 8,400 320,000 2,000 240,000 12,000 168,000 89,600 4,000 180,000 9,000 1,773,200 52,900 Quantity on Hand . 6 - 6 - 11 19 211 6 24 60 24 170 18 December 31, 2022 Total Inventory Value $ 120,000 15,000 330,000 95,000 253,200 240,000 12,000 240,000 168,000 136,000 162,000 1,771,200 Inventory write off ** $ No time to review No time to review No time to review No time to review No time to review No time to review No time to review No time to review No time to review No time to review No time to review 48,000. Excerpt Financial Statements The following are excerpts from PP's December 31, 2022 financial statements (unaudited): Revenue Assets Cash Inventory Property Plant and Equipment $3,900,990 $840,989 $7,723,200 $2,578,900 Note 1 Note 2 Note 3 Note 1 - Includes the cost of five Bitcoins. Note 2 - Includes raw materials, including the Greek wood and piano parts inventory of $1,771,200 less $48,000 written off. Note 3 - Includes the $600,000 newly installed warehouse heating system. Inventory Write-off Due to the shortage of staff, the PP accountant admitted that there was no time to figure out the value of obsolete inventory. She simply applied prior year's percentages to the December 31, 2022 yearend inventory balance. The table below is an excerpt of the piano parts inventory subledger at December 31, 2020, 2021 and 2022 and the amount of inventory written off each year for piano parts only. Excerpts of Piano Parts Inventory 2020, 2021 and 2022 All Values in Canadian Dollars Inventory Part Name Lid Cast Iron Plate Sound Board Treble Strings Tuning pins Keyboard Wheels Pedals Legs Hammers Cost Quantity per on Unit $ Hand 20,000 7 2,500 7 30,000 8 5,000 22 1,200 190 40,000 7 500 40 4,000 60 7,000 24 800 9,000 20 December 31, 2020 120 Total Inventory Quantity Inventory write off on Value $ $ Hand 140,000 17,500 240,000 110,000 228,000 20,000 Bass strings Total "Calculated by multiplying quantity on hand x cost **Estimate based on write-off percentages from 2019 (2.5%) and 2020 (3%). - - 10,000 4,800 280,000 20,000 240,000 168,000 96,000 180,000 1,719,500 43,100 500 . 7,000 800 8 8 8 20 198 8 36 60 24 112 December 31, 2021 20 Total Inventory Value * $ 160,000 20,000 Inventory write off $ 18,000 2,500 240,000 100,000 15,000 237,600 8,400 320,000 2,000 240,000 12,000 168,000 89,600 4,000 180,000 9,000 1,773,200 52,900 Quantity on Hand . 6 - 6 - 11 19 211 6 24 60 24 170 18 December 31, 2022 Total Inventory Value $ 120,000 15,000 330,000 95,000 253,200 240,000 12,000 240,000 168,000 136,000 162,000 1,771,200 Inventory write off ** $ No time to review No time to review No time to review No time to review No time to review No time to review No time to review No time to review No time to review No time to review No time to review 48,000. Excerpt Financial Statements The following are excerpts from PP's December 31, 2022 financial statements (unaudited): Revenue Assets Cash Inventory Property Plant and Equipment $3,900,990 $840,989 $7,723,200 $2,578,900 Note 1 Note 2 Note 3 Note 1 - Includes the cost of five Bitcoins. Note 2 - Includes raw materials, including the Greek wood and piano parts inventory of $1,771,200 less $48,000 written off. Note 3 - Includes the $600,000 newly installed warehouse heating system.

Answer rating: 100% (QA)

Certainly The accountant faced a shortage of staff leaving them unab... View the full answer