Chapter 13 Blake Medical Mini-Case Ill-Class Group Exercise You have returned to Blake Medical, Inc. with the corrected count sheets to do further testing of inventory. At this point you need to audit the inventory listings from Blake Medical's Inventory Ledger which supports the GL and nancial statements. To do this, rst, open the Blake Part 2 spreadsheet. The password is CGL520 (all caps). On one tab (Inventory Ledger) you will see information pulled from Blake Medical's Inventory Ledger. The other tabs in the spreadsheet are data pulled from Blake Medical's accounting system on purchases and sales of inventory (although it is not a complete listing, it is the most relevant to your testing). Blake uses FIFO for valuing their inventory and tests for Lower of Cost or Market on each item of inventory individually. m: the ledger shows the detail supporting the client's nal inventory which has been updated after the year end physical count. Using the corrected count sheets, you need to audit the inputs to this balance including the quantity to ensure it includes all inventory counted (completeness) and nothing that wasn't counted (existence). You also need to audit the unit cost to ensure that the FIFO assumption was applied correctly and that they also comply with the lower of cost or market principle. 1. Identify and list any misstated quantities you found while auditing Blake Medical's items counts in the ledger relating to both completeness and existence: Inventory # Ledger Quantity Correct Quantity 2. Identify and list any misstated item(s) resulting from incorrectly applying the FIFO assumption