Analysis Provided by the Independent Review (pre-audit): Note: paragraphs labeled with an initial letter in parentheses (like (b)) are the items for which a GAAP compliance issue was identified. Product-Related Revenue: During 2021, TouchBase had the following sales of these items: Item Quantity Unit Price Recorded in Account TouchTop laptop computers 960 $1,495 Revenue - TouchTop TouchLet tablet computers 320 $495 Revenue - TouchLet Other hardware items Total value = $97,500 Revenue - Hardware Software Total value = $57,000 Revenue - Software Extended warranty* 240 $195 Revenue - Warranty Promotion package* 400 $1,595 Revenue - Promo * see explanations below Product Sales, Inventory and Cost of Goods Sold: TouchBase uses a periodic inventory system and plans to use a FIFO approach when it adopts GAAP for 2021.

(a) TouchTop laptop computers Provided on worksheet (a) is a summary of inventory-related activity for TouchTop laptop computers during 2021. All regular (non-promo) sales were recorded at the same sales price of $1,495 per unit, recorded in the Revenue TouchTop account. Revenue from TouchTops sold under the promo package (see paragraph (d) below) were included in the amount recorded in Revenue Promo. All inventory was purchased on credit, and was recorded immediately in the COGS TouchTop account. The $455,175 value of the TouchTop computers counted at the end of 2020 was recorded in the Inventory TouchTop account, which was not changed during 2021

THE QUESTION: Something done is a) is incorrect. I need to know the correct JE and what the issue was.. there is no direct question. You to figure out what was done wrong with accordance to GAP

TouchTop Activity Purch. Qty Unit Cost Non-Promo Sales Qty Non-Promo Price Non-Promo Revenue Promo Sales Qty Promo Price Promo Revenue

Beg. Inv. 450 $1,011.50

1^st Qtr Sales 207 $1,495.00 $309,465 86

4/1 Purchase 410 $1,019.60

2^nd Qtr Sales 217 $1,495.00 $324,415 97

7/1 Purchase 470 $1,024.70

3^rd Qtr Sales 207 $1,495.00 $309,465 84

10/1 Purchase 630 $1,034.90

4^th Qtr Sales 329 $1,495.00 $491,855 133

TOTAL QTYs 1,960 960 $1,435,200 400

Question

Analysis Provided by the Independent Review (pre-audit): Note: paragraphs labeled with an initial letter in parentheses (like (b)) are the items for which a GAAP compliance issue was identified. Product-Related Revenue: During 2021, TouchBase had the following sales of these items: Item Quantity Unit Price Recorded in Account TouchTop laptop computers 960 $1,495 Revenue - TouchTop TouchLet tablet computers 320 $495 Revenue - TouchLet Other hardware items Total value = $97,500 Revenue - Hardware Software Total value = $57,000 Revenue - Software Extended warranty* 240 $195 Revenue - Warranty Promotion package* 400 $1,595 Revenue - Promo * see explanations below Product Sales, Inventory and Cost of Goods Sold: TouchBase uses a periodic inventory system and plans to use a FIFO approach when it adopts GAAP for 2021.

(a) TouchTop laptop computers Provided on worksheet (a) is a summary of inventory-related activity for TouchTop laptop computers during 2021. All regular (non-promo) sales were recorded at the same sales price of $1,495 per unit, recorded in the Revenue TouchTop account. Revenue from TouchTops sold under the promo package (see paragraph (d) below) were included in the amount recorded in Revenue Promo. All inventory was purchased on credit, and was recorded immediately in the COGS TouchTop account. The $455,175 value of the TouchTop computers counted at the end of 2020 was recorded in the Inventory TouchTop account, which was not changed during 2021

THE QUESTION: Something done is a) is incorrect. I need to know the correct JE and what the issue was.. there is no direct question. You to figure out what was done wrong with accordance to GAP

TouchTop Activity	Purch. Qty	Unit Cost	Non-Promo Sales Qty	Non-Promo Price	Non-Promo Revenue	Promo Sales Qty	Promo Price	Promo Revenue
Beg. Inv.	450	$1,011.50
1^st Qtr Sales			207	$1,495.00	$309,465	86
4/1 Purchase	410	$1,019.60
2^nd Qtr Sales			217	$1,495.00	$324,415	97
7/1 Purchase	470	$1,024.70
3^rd Qtr Sales			207	$1,495.00	$309,465	84
10/1 Purchase	630	$1,034.90
4^th Qtr Sales			329	$1,495.00	$491,855	133
TOTAL QTYs	1,960		960		$1,435,200	400

Accepted Answer

The Answer is in the image, click to view ...

Question

Analysis Provided by the Independent Review (pre-audit): Note: paragraphs labeled with an initial letter in parentheses (like (b)) are the items for which a GAAP

Step by Step Solution

Step: 1

Get Instant Access to Expert-Tailored Solutions

Step: 2

Step: 3

Ace Your Homework with AI

Recommended Textbook for

Expert Systems And Artificial Intelligence In Internal Auditing

Students also viewed these Accounting questions

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question