In the process of finalizing its draft accounts for the year ended 30 April 21Y7 and its draft balance sheet as at 30 April 21Y7, STU Enterprises identified an error in the stock lists used to compute stock value as at 30 April 21Y7. The entry was:

Stock item	Number	Cost per unit	Total cost
P678	50	£6.10	£305

Required: (a) What is incorrect about this entry? (b) Explain the impact of this error on: (i) the stock value as at 30 April 21Y7. (ii) the cost of goods sold for the year ended 30 April 21Y7. (iii) the net profit for the year ended 30 April 21Y7.