You have performed a test of inventory for obsolescence [cost or market, whichever is lower] for...
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You have performed a test of inventory for obsolescence [cost or market, whichever is lower] for a private client, Micro Tech Industries. MTI's inventory has become sensitive to changes in the marketability of its products. The client has not recognized an allowance for obsolescence. You have been engaged to estimate the allowance. Based on existing facts and circumstances, is appears that as much as $4,100,000 of inventory could be obsolete. Assume the $4,100,00 is material. You have calculated the sample size so that an estimate of obsolescence can be obtained with a precision no greater than $4,100,000 at 90% confidence, 2-sided, if the actual obsolete amount is as large as $4,100,000. You selected a 135 item monetary unit sample and evaluated the selected items to determine the amounts by which items' market values are less that their cost. The results of that sample are given on the sheet entitled "MUS EVALUATION" REQUIRED Using the results in "MUS EVALUATION", present your conclusions in the spreadsheet entitled "CONCLUSIONS" following the guidance on Topic 6. READ ME NAME: A B C DR CRI MUS EVALUATION CONCLUSIONS RESULTS [PRESENT IN GOOD PROFESSIONAL FORM] ALL MISSTATEMENTS IN THIS TEST ARE OVERSTATEMENTS OF INVENTORY DUE TO OBSOLESCENCE ALSO, MISSTATEMENTS HAVE NOT BEEN CORRECTED OR ADJUSTED FOR IN ANY WAY. SKETCH THE SAMPLE RESULTS BASED ON THE GUIDANCE IN TOPIC 6 [USE SHAPES DO NOT JUST COPY THE TOPIC 6 IMAGES) STATE YOUR CONCLUSION BASED ON YOUR SAMPLE RESULTS SHOW THE JOURNAL ENTRY FOR A MATERIALLY CORRECT ADJUSTMENT FOR OBSOLESCENCE TO: READ ME MUS EVALUATION TOTAL STRATUM BOOK VALUE: STRATUM SAMPLE SIZE: STRATUM SAMPLE-TOTAL TAINTINGS SAMPLE ITEM 8 9 10 11 12 13 14 15 16 17 IN 19 20 21 22 23 24 25 SAMPLED STRATUM 26 27 28 29 30 31 32 33 34 35 4.139.124 3,066 6,783.5 19.045.689 3932.7 26,724.4 24748 3390 1,028 3,3069 4.899,3 8.11270% 1.72334% PROJECTED MISSTATEMENT 407714% 7,292.1 9,337.9 73 6.291.4 4,204.767 73581 3,1275 15,402.376 4,263.104 4.1964 K2764 3,5075 11,5418 32243 3.771.2 870.4 2.357.4 MONETARY UNIT SAMPLE-OVERSTATEMENT EVALUATION This prestates the total at of arytatement in the pu 140757) 1141423 6,168 15,232403 2,407 3 3,3624 53709 1846 UPPER LIMIT LOWER LIMIT SAMPLED STRATUM ENTER ALL ITEMS WHETHER OR NOT MISSTATED BOOK VALUE MISSTATEMENT IMUS TAINTING 1176.72 6.00 600 7323. CONCLUSIONS 6.00 6.00 00 0.00 6.00 0:00 8.00 6.00 600 0.00 6.00 140467 800 000 639828 1544 50 6.00 8.00 0.00 SUMMARY OF SAMPLE AND 100% STRATA RESULTS (Enter data in the yellow c 600 6.00 6.00 191,792,361.82 6,00 6.50 44837 273.22 0.00 639640 6.00 600 800 6.00 Confidence Level (1-sided 2-sided SAMPLED STRATUM NOTE: Some cells will display "UNE M" until all required data are entered AMOUNT 029254249 03845011 040065716 04100364 0214 03168334 RATE 041952673 7446.912.313 1,581,916.573 3.742,504.782 TOTAL STRATUM BOOK VALUE 100% STRATUM TOTAL AMOUNT OF MISSTATEMENT NUMBER OF ITEMS IN STRATUM For example, enter 37.5 for 37.5% confidence] ADD 100% STRATUM 100% STRATUM ENTER ALL ITEMS WHETHER OR NOT MISSTATED 100% (TEM BOOK VALUE MISSTATEMENT LIMITS FOR TOTAL MISSTATEMENT 7,448.312.313 1,581,916.573 3,742,504.792 You have performed a test of inventory for obsolescence [cost or market, whichever is lower] for a private client, Micro Tech Industries. MTI's inventory has become sensitive to changes in the marketability of its products. The client has not recognized an allowance for obsolescence. You have been engaged to estimate the allowance. Based on existing facts and circumstances, is appears that as much as $4,100,000 of inventory could be obsolete. Assume the $4,100,00 is material. You have calculated the sample size so that an estimate of obsolescence can be obtained with a precision no greater than $4,100,000 at 90% confidence, 2-sided, if the actual obsolete amount is as large as $4,100,000. You selected a 135 item monetary unit sample and evaluated the selected items to determine the amounts by which items' market values are less that their cost. The results of that sample are given on the sheet entitled "MUS EVALUATION" REQUIRED Using the results in "MUS EVALUATION", present your conclusions in the spreadsheet entitled "CONCLUSIONS" following the guidance on Topic 6. READ ME NAME: A B C DR CRI MUS EVALUATION CONCLUSIONS RESULTS [PRESENT IN GOOD PROFESSIONAL FORM] ALL MISSTATEMENTS IN THIS TEST ARE OVERSTATEMENTS OF INVENTORY DUE TO OBSOLESCENCE ALSO, MISSTATEMENTS HAVE NOT BEEN CORRECTED OR ADJUSTED FOR IN ANY WAY. SKETCH THE SAMPLE RESULTS BASED ON THE GUIDANCE IN TOPIC 6 [USE SHAPES DO NOT JUST COPY THE TOPIC 6 IMAGES) STATE YOUR CONCLUSION BASED ON YOUR SAMPLE RESULTS SHOW THE JOURNAL ENTRY FOR A MATERIALLY CORRECT ADJUSTMENT FOR OBSOLESCENCE TO: READ ME MUS EVALUATION TOTAL STRATUM BOOK VALUE: STRATUM SAMPLE SIZE: STRATUM SAMPLE-TOTAL TAINTINGS SAMPLE ITEM 8 9 10 11 12 13 14 15 16 17 IN 19 20 21 22 23 24 25 SAMPLED STRATUM 26 27 28 29 30 31 32 33 34 35 4.139.124 3,066 6,783.5 19.045.689 3932.7 26,724.4 24748 3390 1,028 3,3069 4.899,3 8.11270% 1.72334% PROJECTED MISSTATEMENT 407714% 7,292.1 9,337.9 73 6.291.4 4,204.767 73581 3,1275 15,402.376 4,263.104 4.1964 K2764 3,5075 11,5418 32243 3.771.2 870.4 2.357.4 MONETARY UNIT SAMPLE-OVERSTATEMENT EVALUATION This prestates the total at of arytatement in the pu 140757) 1141423 6,168 15,232403 2,407 3 3,3624 53709 1846 UPPER LIMIT LOWER LIMIT SAMPLED STRATUM ENTER ALL ITEMS WHETHER OR NOT MISSTATED BOOK VALUE MISSTATEMENT IMUS TAINTING 1176.72 6.00 600 7323. CONCLUSIONS 6.00 6.00 00 0.00 6.00 0:00 8.00 6.00 600 0.00 6.00 140467 800 000 639828 1544 50 6.00 8.00 0.00 SUMMARY OF SAMPLE AND 100% STRATA RESULTS (Enter data in the yellow c 600 6.00 6.00 191,792,361.82 6,00 6.50 44837 273.22 0.00 639640 6.00 600 800 6.00 Confidence Level (1-sided 2-sided SAMPLED STRATUM NOTE: Some cells will display "UNE M" until all required data are entered AMOUNT 029254249 03845011 040065716 04100364 0214 03168334 RATE 041952673 7446.912.313 1,581,916.573 3.742,504.782 TOTAL STRATUM BOOK VALUE 100% STRATUM TOTAL AMOUNT OF MISSTATEMENT NUMBER OF ITEMS IN STRATUM For example, enter 37.5 for 37.5% confidence] ADD 100% STRATUM 100% STRATUM ENTER ALL ITEMS WHETHER OR NOT MISSTATED 100% (TEM BOOK VALUE MISSTATEMENT LIMITS FOR TOTAL MISSTATEMENT 7,448.312.313 1,581,916.573 3,742,504.792 You have performed a test of inventory for obsolescence [cost or market, whichever is lower] for a private client, Micro Tech Industries. MTI's inventory has become sensitive to changes in the marketability of its products. The client has not recognized an allowance for obsolescence. You have been engaged to estimate the allowance. Based on existing facts and circumstances, is appears that as much as $4,100,000 of inventory could be obsolete. Assume the $4,100,00 is material. You have calculated the sample size so that an estimate of obsolescence can be obtained with a precision no greater than $4,100,000 at 90% confidence, 2-sided, if the actual obsolete amount is as large as $4,100,000. You selected a 135 item monetary unit sample and evaluated the selected items to determine the amounts by which items' market values are less that their cost. The results of that sample are given on the sheet entitled "MUS EVALUATION" REQUIRED Using the results in "MUS EVALUATION", present your conclusions in the spreadsheet entitled "CONCLUSIONS" following the guidance on Topic 6. READ ME NAME: A B C DR CRI MUS EVALUATION CONCLUSIONS RESULTS [PRESENT IN GOOD PROFESSIONAL FORM] ALL MISSTATEMENTS IN THIS TEST ARE OVERSTATEMENTS OF INVENTORY DUE TO OBSOLESCENCE ALSO, MISSTATEMENTS HAVE NOT BEEN CORRECTED OR ADJUSTED FOR IN ANY WAY. SKETCH THE SAMPLE RESULTS BASED ON THE GUIDANCE IN TOPIC 6 [USE SHAPES DO NOT JUST COPY THE TOPIC 6 IMAGES) STATE YOUR CONCLUSION BASED ON YOUR SAMPLE RESULTS SHOW THE JOURNAL ENTRY FOR A MATERIALLY CORRECT ADJUSTMENT FOR OBSOLESCENCE TO: READ ME MUS EVALUATION TOTAL STRATUM BOOK VALUE: STRATUM SAMPLE SIZE: STRATUM SAMPLE-TOTAL TAINTINGS SAMPLE ITEM 8 9 10 11 12 13 14 15 16 17 IN 19 20 21 22 23 24 25 SAMPLED STRATUM 26 27 28 29 30 31 32 33 34 35 4.139.124 3,066 6,783.5 19.045.689 3932.7 26,724.4 24748 3390 1,028 3,3069 4.899,3 8.11270% 1.72334% PROJECTED MISSTATEMENT 407714% 7,292.1 9,337.9 73 6.291.4 4,204.767 73581 3,1275 15,402.376 4,263.104 4.1964 K2764 3,5075 11,5418 32243 3.771.2 870.4 2.357.4 MONETARY UNIT SAMPLE-OVERSTATEMENT EVALUATION This prestates the total at of arytatement in the pu 140757) 1141423 6,168 15,232403 2,407 3 3,3624 53709 1846 UPPER LIMIT LOWER LIMIT SAMPLED STRATUM ENTER ALL ITEMS WHETHER OR NOT MISSTATED BOOK VALUE MISSTATEMENT IMUS TAINTING 1176.72 6.00 600 7323. CONCLUSIONS 6.00 6.00 00 0.00 6.00 0:00 8.00 6.00 600 0.00 6.00 140467 800 000 639828 1544 50 6.00 8.00 0.00 SUMMARY OF SAMPLE AND 100% STRATA RESULTS (Enter data in the yellow c 600 6.00 6.00 191,792,361.82 6,00 6.50 44837 273.22 0.00 639640 6.00 600 800 6.00 Confidence Level (1-sided 2-sided SAMPLED STRATUM NOTE: Some cells will display "UNE M" until all required data are entered AMOUNT 029254249 03845011 040065716 04100364 0214 03168334 RATE 041952673 7446.912.313 1,581,916.573 3.742,504.782 TOTAL STRATUM BOOK VALUE 100% STRATUM TOTAL AMOUNT OF MISSTATEMENT NUMBER OF ITEMS IN STRATUM For example, enter 37.5 for 37.5% confidence] ADD 100% STRATUM 100% STRATUM ENTER ALL ITEMS WHETHER OR NOT MISSTATED 100% (TEM BOOK VALUE MISSTATEMENT LIMITS FOR TOTAL MISSTATEMENT 7,448.312.313 1,581,916.573 3,742,504.792 You have performed a test of inventory for obsolescence [cost or market, whichever is lower] for a private client, Micro Tech Industries. MTI's inventory has become sensitive to changes in the marketability of its products. The client has not recognized an allowance for obsolescence. You have been engaged to estimate the allowance. Based on existing facts and circumstances, is appears that as much as $4,100,000 of inventory could be obsolete. Assume the $4,100,00 is material. You have calculated the sample size so that an estimate of obsolescence can be obtained with a precision no greater than $4,100,000 at 90% confidence, 2-sided, if the actual obsolete amount is as large as $4,100,000. You selected a 135 item monetary unit sample and evaluated the selected items to determine the amounts by which items' market values are less that their cost. The results of that sample are given on the sheet entitled "MUS EVALUATION" REQUIRED Using the results in "MUS EVALUATION", present your conclusions in the spreadsheet entitled "CONCLUSIONS" following the guidance on Topic 6. READ ME NAME: A B C DR CRI MUS EVALUATION CONCLUSIONS RESULTS [PRESENT IN GOOD PROFESSIONAL FORM] ALL MISSTATEMENTS IN THIS TEST ARE OVERSTATEMENTS OF INVENTORY DUE TO OBSOLESCENCE ALSO, MISSTATEMENTS HAVE NOT BEEN CORRECTED OR ADJUSTED FOR IN ANY WAY. SKETCH THE SAMPLE RESULTS BASED ON THE GUIDANCE IN TOPIC 6 [USE SHAPES DO NOT JUST COPY THE TOPIC 6 IMAGES) STATE YOUR CONCLUSION BASED ON YOUR SAMPLE RESULTS SHOW THE JOURNAL ENTRY FOR A MATERIALLY CORRECT ADJUSTMENT FOR OBSOLESCENCE TO: READ ME MUS EVALUATION TOTAL STRATUM BOOK VALUE: STRATUM SAMPLE SIZE: STRATUM SAMPLE-TOTAL TAINTINGS SAMPLE ITEM 8 9 10 11 12 13 14 15 16 17 IN 19 20 21 22 23 24 25 SAMPLED STRATUM 26 27 28 29 30 31 32 33 34 35 4.139.124 3,066 6,783.5 19.045.689 3932.7 26,724.4 24748 3390 1,028 3,3069 4.899,3 8.11270% 1.72334% PROJECTED MISSTATEMENT 407714% 7,292.1 9,337.9 73 6.291.4 4,204.767 73581 3,1275 15,402.376 4,263.104 4.1964 K2764 3,5075 11,5418 32243 3.771.2 870.4 2.357.4 MONETARY UNIT SAMPLE-OVERSTATEMENT EVALUATION This prestates the total at of arytatement in the pu 140757) 1141423 6,168 15,232403 2,407 3 3,3624 53709 1846 UPPER LIMIT LOWER LIMIT SAMPLED STRATUM ENTER ALL ITEMS WHETHER OR NOT MISSTATED BOOK VALUE MISSTATEMENT IMUS TAINTING 1176.72 6.00 600 7323. CONCLUSIONS 6.00 6.00 00 0.00 6.00 0:00 8.00 6.00 600 0.00 6.00 140467 800 000 639828 1544 50 6.00 8.00 0.00 SUMMARY OF SAMPLE AND 100% STRATA RESULTS (Enter data in the yellow c 600 6.00 6.00 191,792,361.82 6,00 6.50 44837 273.22 0.00 639640 6.00 600 800 6.00 Confidence Level (1-sided 2-sided SAMPLED STRATUM NOTE: Some cells will display "UNE M" until all required data are entered AMOUNT 029254249 03845011 040065716 04100364 0214 03168334 RATE 041952673 7446.912.313 1,581,916.573 3.742,504.782 TOTAL STRATUM BOOK VALUE 100% STRATUM TOTAL AMOUNT OF MISSTATEMENT NUMBER OF ITEMS IN STRATUM For example, enter 37.5 for 37.5% confidence] ADD 100% STRATUM 100% STRATUM ENTER ALL ITEMS WHETHER OR NOT MISSTATED 100% (TEM BOOK VALUE MISSTATEMENT LIMITS FOR TOTAL MISSTATEMENT 7,448.312.313 1,581,916.573 3,742,504.792
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MUS EVALUATION Item Cost Market Value Amount by which Market Value is less than Cost ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
Posted Date:
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