Question
ASSETS Non-current assets Inventory Engines Aluminium Coverings Finished goods 892 980 2 170 10 000 15 915 440 Notes -The below is the account workings
ASSETS
Non-current assets
Inventory
Engines
Aluminium
Coverings
Finished goods
892 980
2 170
10 000
15 915 440
Notes
-The below is the account workings for the figures above
-Engines = 30 units * R29 766
-Aluminium = 10 units * R217 (Average cost based on LIFO calculated)
-Finished goods= 80 Units * R198 943
REQUIRED:
Identify the errors made by the previous accountant AND discuss the correct treatment for each errors raised. (Provide calculations to support your discussion if necessary)
ASSETS
Non-current assets
Inventory
Engines
Aluminium
Coverings
Finished goods
892 980
2 170
10 000
15 915 440
Notes
-The below is the account workings for the figures above
-Engines = 30 units * R29 766
-Aluminium = 10 units * R217 (Average cost based on LIFO calculated)
-Finished goods= 80 Units * R198 943
REQUIRED:
Identify the errors made by the previous accountant AND discuss the correct treatment for each errors raised. (Provide calculations to support your discussion if necessary)
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Intermediate Accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
10th edition
1260481956, 1260310175, 978-1260481952
