in the amount of $200. This bill was entered in the freight-in account. Virtually all freight was for the metal formers.

This is the first time Sea Gull Airframes has been audited by your firm.

Required

a. Review all information and determine the inventory misstatements of the seven items in question. State any assumptions you consider necessary to determine the amount of the misstatements.

b. Prepare a working-paper schedule on the computer to summarize your findings. (Instructor's option)

Transcribed Image Text:

SEA GULL AIRFRAMES INFORMATION FOR PRICING FROM INVOICES RECEIVING VOUCHER NUMBER VOUCHER DATE REPORT DATE PAID TERMS DATE 7-68 01-08-97 21-08-97 Net FOB 01-08-97 11-81 16-10-01 15-11-01 destination Net FOB 18-10-01 destination 12-06 08-12-01 30-12-01 2/10, n/30 FOB 10-12-01 S.P. 12-09 10-12-01 18-12-01 Net FOB 11-12-01 destination 12-18 27-12-01 27-12-01 2/10, n/30 FOB 21-12-01 S.P. 12-23 24-12-01 03-01-02 12-61 29-12-01 08-01-02 12-81 31-12-01 20-01-02 2/10, n/30 FOB 26-12-01 destination Net FOB destination Net FOB destination 29-12-01 06-01-02 INVOICE DESCRIPTION 77 V16 fasteners at $10 per dozen 1,100 m R01 metal ribs at $9.50 per meure, 2,000 in St26 struts at $8.20 per metre 1880 L803 steel leaf springs at $69 each 45 industrial hand drills at $20 each; guaranteed for four years 4,200 m L37 spars at $8 per metre 1,280 cm B68 metal formers at $4 per metre 1,000 m R01 metal ribs at $10 per metre; 800 m St26 struts at $8 per metre 2,000 m L37 spars at $7.50 per metre: 2,000 m R01 metal ribs at $10 per metre