While preparing its draft final accounts for the year ended 31 October 21Y8 and its draft balance sheet as at 31 October 21Y8, VWX Corp discovered a mistake in the stock lists used to compute stock value as at 31 October 21Y8 The entry was Stock item Number Cost per unit Total cost Q456 75 3 90 292 50 Required (a) Identify the error in this entry (b) Discuss the implications of this error on (i) the stock value as at 31 October 21Y8 (ii) the cost of goods sold for the year ended 31 October 21Y8 (iii) the total for Current Assets as at 31 October 21Y8

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Question: While preparing its draft final accounts for the year ended 31 October 21Y8 and its draft balance sheet as at 31 October 21Y8, VWX Corp

While preparing its draft final accounts for the year ended 31 October 21Y8 and its draft balance sheet as at 31 October 21Y8, VWX Corp discovered a mistake in the stock lists used to compute stock value as at 31 October 21Y8. The entry was:

Stock item	Number	Cost per unit	Total cost
Q456	75	£3.90	£292.50

Required: (a) Identify the error in this entry. (b) Discuss the implications of this error on: (i) the stock value as at 31 October 21Y8. (ii) the cost of goods sold for the year ended 31 October 21Y8. (iii) the total for Current Assets as at 31 October 21Y8.

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