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MICRO TECH INDUSTRIES You have performed a test of inventory for obsolescence [cost or market, whichever i lower] for a private client, Micro Tech Industries.

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MICRO TECH INDUSTRIES You have performed a test of inventory for obsolescence [cost or market, whichever i lower] for a private client, Micro Tech Industries. MTI's $91.8 million inventory has become sensitive to changes in the marketability of its products. The client has not ye recognized an allowance for obsolescence. You have been engaged to estimate the allowance. Based on existing facts and circumstances, is appears that as much as $4,100,000 of inventory could be obsolete. Assume the $4,100,00 is material. You have calculated the sample size so that an estimate of obsolescence can be obtained with a precision no greater than $4,100,000 at 90% confidence, 2-sided, if the actual obsolete amount is as large as $4,100,000. You selected a 35 item monetary unit sample and evaluated the selected items to determine the amounts by which items' market values are less than their cost. The results of that sample are given on the sheet entitled "MUS EUALUATION" REQUIRED 1. Open the workbook "MTI inventory obsolescence samples by team.xls x " 2. Copy the ENTIRE spreadsheet for your team [Sheetx] in "MTI inventory obsolescence samples by team.xls x" by setting your mouse pointer to the triangle in the upper left corner of the spreadsheet and selecting COPY [ctri-c]. 3. Paste into TESTEDSAMPLE in this workbook. Set your mouse to cell Al before selecting PASTE [ctrl-V]. 4. The statistical evaluation of your sample is in the spreadsheet entitled STATISTICAL EVAL. There is nothing for you to enter. Use this spreadsheet to complete items 5 and 6 below. 5. Enter YOUR RESPONSES in the spreadsheet of that name.following the guidance in Topic 6. ALL MISSTATEMENTS IN THIS TEST ARE OVERSTATEMENTS OF INVENTORY DUE TO OBSOLESCENCE ALSO, MISSTATEMENTS HAVE NOT BEEN CORRECTED OR ADJUSTED FOR IN ANY WAY, \begin{tabular}{l|l|l|l} READ ME & YOUR RESPONSES & SELECTED SAMPLE & STATISTICAL EVAL \\ \hline \end{tabular} MICRO TECH INDUSTRIES You have performed a test of inventory for obsolescence [cost or market, whichever i lower] for a private client, Micro Tech Industries. MTI's $91.8 million inventory has become sensitive to changes in the marketability of its products. The client has not ye recognized an allowance for obsolescence. You have been engaged to estimate the allowance. Based on existing facts and circumstances, is appears that as much as $4,100,000 of inventory could be obsolete. Assume the $4,100,00 is material. You have calculated the sample size so that an estimate of obsolescence can be obtained with a precision no greater than $4,100,000 at 90% confidence, 2-sided, if the actual obsolete amount is as large as $4,100,000. You selected a 35 item monetary unit sample and evaluated the selected items to determine the amounts by which items' market values are less than their cost. The results of that sample are given on the sheet entitled "MUS EUALUATION" REQUIRED 1. Open the workbook "MTI inventory obsolescence samples by team.xls x " 2. Copy the ENTIRE spreadsheet for your team [Sheetx] in "MTI inventory obsolescence samples by team.xls x" by setting your mouse pointer to the triangle in the upper left corner of the spreadsheet and selecting COPY [ctri-c]. 3. Paste into TESTEDSAMPLE in this workbook. Set your mouse to cell Al before selecting PASTE [ctrl-V]. 4. The statistical evaluation of your sample is in the spreadsheet entitled STATISTICAL EVAL. There is nothing for you to enter. Use this spreadsheet to complete items 5 and 6 below. 5. Enter YOUR RESPONSES in the spreadsheet of that name.following the guidance in Topic 6. ALL MISSTATEMENTS IN THIS TEST ARE OVERSTATEMENTS OF INVENTORY DUE TO OBSOLESCENCE ALSO, MISSTATEMENTS HAVE NOT BEEN CORRECTED OR ADJUSTED FOR IN ANY WAY, \begin{tabular}{l|l|l|l} READ ME & YOUR RESPONSES & SELECTED SAMPLE & STATISTICAL EVAL \\ \hline \end{tabular}

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