You are auditing inventory of HUSKY Corp. as of December 31, 2007.The inventory general ledger balance is $8,124,998.66. HUSKY manufactures lawn and garden tractors, snowmobiles, and supplies. Download the data file labeled “HUSKY 2007 Inventory” from the books’ web site www.thomsonedu.com/accounting/rittenberg.under student resources.
This file contains the following information:
SNUMB Stock number (The first letter is F—finished goods, W—work in progress, R—raw material.)
LASTSALE Date of last sale (finished goods) or use (raw material)
NUMSOLD Number sold (finished goods) or used (raw materials) year-to-date
UNITCOST Unit cost
INVQTY Quantity on hand
EXTCOST Unit cost x quantity on hand.
SELPRICE Current selling price (finished goods only)
REPLCOST Current replacement cost (raw material only)
Salespersons receive a 10% commission based on selling price.

Required
Using ACL:
a. Using the menu option Analyze, choose Statistical then Statistics on the amount field, print the statistics and agree the total inventory to the general ledger.
b. Extract and printout all inventory items that have not been used or sold in six months. Include in the printout the total extended cost of those items.
c. Extract the finished goods into a separate file.
i. Extract those items that have a net realizable value less than cost. Add a column and calculate the amount of each of those items; these should be written down, and print a report that includes those items and the total of the write down.
ii. Add a field and calculate inventory turnover for each item in inventory. Extract and print a report of those items with a turnover less than 2.The report should include the total extended cost of those items.
d. Extract the raw materials into a separate file (see hint in part (c) but replace "F" with "R"):
i. Extract those items that have a replacement cost less than cost, add a column and calculate the amount of each of those items these should be written down, and print a report that includes those items and the total of the write down.
ii. Add a column and calculate inventory turnover for each item. Extract and print a report of those items with a turnover less than 2.The report should include the total extended cost of those items.
e. Prepare a report of the audit implications of your findings, indicating any additional procedures that should be performed.