MICRO TECH INDUSTRIES You have performed a test of inventory for obsolescence (cost or market, whichever is lower] for a private client, Micro Tech Industries. MTI's inventory has become sensitive to changes in the market ability of its products. The client has not 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 135 item monetary unit sample and evaluated the selected items to determine the amounts by which items' market values are less that their cost. The results of that sample are given on the sheet entitled "MUS EVALUATION" REQUIRED Using the results in "MUS EVALUATION, present your conclusions in the spreadsheet entitled "CONCLUSIONS" following the guidance on Topic 6. READ ME MUS EVALUATION CONCLUSIONS NAME: RESULTS (PRESENT IN GOOD PROFESSIONAL FORM) ALL MISSTATEMENTS IN THIS TEST ARE OVERSTATEMENTS OF INVENTORY DUE TO OBSOLESCENCE ALSO, MISSTATEMENTS HAVE NOT BEEN CORRECTED OR ADJUSTED FOR IN ANY WAY, SKETCH THE SAMPLE RESULTS BASED ON THE GUIDANCE IN TOPIC 6 (USE SHAPES DO NOT JUST COPY THE TOPIC 6 IMAGES B STATE YOUR CONCLUSION BASED ON YOUR SAMPLE RESULTS C SHOW THE JOURNAL ENTRY FOR A MATERIALLY CORRECT ADJUSTMENT FOR OBSOLESCENCE DR CR TO: READ ME MUS EVALUATION CONCLUSIONS MONETARY UNIT SAMPLE - OVERSTATEMENT EVALUATION The fully SUMMARY OF SAMPLE AND 100% STRATA RESULTS Enter data in the yellow SAMPLED STRATUM STRATUM TOTAL STRATUM BOOK VALUE: TOTAL STRATUM BOOK VALUE TOTAL AMOUNT OF MSSTATEMENT NUMBER OF ITEMS IN STRATUS STRATUM AMPLE SE STRATUM BAMPLE - TOTAL TAINTINGS Forsamline 757.5cidence Confidence Level - Qad SAMPLED STRATUM RATE AMOUNT 1112705 TA1912 313 ADD STRATUM LIMITS FOR TOTAL MISSTATEMENT UPPER LIMIT 1912 13 LOWER LIMIT 172335 1.116.73 t51.916573 PROJECTED MISSTATEMENT 4077145 116.504.72 14.504 NOTE Smecelles quired to 1 STRATUM ENTER ALL MYSTER OR NOT STATE HOONE BOOKU STATEMENT SAMPLE TEME 11 SAMPLED STRATUM INTER ALL ITEMS WHETHER OR NOT MISTATUD BOOK VALLE MESSTATEMENT MUSTANTINO 41.134 500 00 18,05689 TRIEDS 2012 267244 00 2.414 00 0.00 1. . 10 11 13 2.00 41 2.1 2,112 93 . 50 14 15 16 11 0.400. UNNY TI 3.1271 00 11 TO 19 20 21 BOR 2014 4194 7641 0.00 600 11:43 29 34 25 26 27 28 17112 7041 21STS 1,0771 00 3.00 10 ST 27123 00 90 041936 RUG 1522403 24023 1. SI . 34 WS 600 30 MICRO TECH INDUSTRIES You have performed a test of inventory for obsolescence (cost or market, whichever is lower] for a private client, Micro Tech Industries. MTI's inventory has become sensitive to changes in the market ability of its products. The client has not 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 135 item monetary unit sample and evaluated the selected items to determine the amounts by which items' market values are less that their cost. The results of that sample are given on the sheet entitled "MUS EVALUATION" REQUIRED Using the results in "MUS EVALUATION, present your conclusions in the spreadsheet entitled "CONCLUSIONS" following the guidance on Topic 6. READ ME MUS EVALUATION CONCLUSIONS NAME: RESULTS (PRESENT IN GOOD PROFESSIONAL FORM) ALL MISSTATEMENTS IN THIS TEST ARE OVERSTATEMENTS OF INVENTORY DUE TO OBSOLESCENCE ALSO, MISSTATEMENTS HAVE NOT BEEN CORRECTED OR ADJUSTED FOR IN ANY WAY, SKETCH THE SAMPLE RESULTS BASED ON THE GUIDANCE IN TOPIC 6 (USE SHAPES DO NOT JUST COPY THE TOPIC 6 IMAGES B STATE YOUR CONCLUSION BASED ON YOUR SAMPLE RESULTS C SHOW THE JOURNAL ENTRY FOR A MATERIALLY CORRECT ADJUSTMENT FOR OBSOLESCENCE DR CR TO: READ ME MUS EVALUATION CONCLUSIONS MONETARY UNIT SAMPLE - OVERSTATEMENT EVALUATION The fully SUMMARY OF SAMPLE AND 100% STRATA RESULTS Enter data in the yellow SAMPLED STRATUM STRATUM TOTAL STRATUM BOOK VALUE: TOTAL STRATUM BOOK VALUE TOTAL AMOUNT OF MSSTATEMENT NUMBER OF ITEMS IN STRATUS STRATUM AMPLE SE STRATUM BAMPLE - TOTAL TAINTINGS Forsamline 757.5cidence Confidence Level - Qad SAMPLED STRATUM RATE AMOUNT 1112705 TA1912 313 ADD STRATUM LIMITS FOR TOTAL MISSTATEMENT UPPER LIMIT 1912 13 LOWER LIMIT 172335 1.116.73 t51.916573 PROJECTED MISSTATEMENT 4077145 116.504.72 14.504 NOTE Smecelles quired to 1 STRATUM ENTER ALL MYSTER OR NOT STATE HOONE BOOKU STATEMENT SAMPLE TEME 11 SAMPLED STRATUM INTER ALL ITEMS WHETHER OR NOT MISTATUD BOOK VALLE MESSTATEMENT MUSTANTINO 41.134 500 00 18,05689 TRIEDS 2012 267244 00 2.414 00 0.00 1. . 10 11 13 2.00 41 2.1 2,112 93 . 50 14 15 16 11 0.400. UNNY TI 3.1271 00 11 TO 19 20 21 BOR 2014 4194 7641 0.00 600 11:43 29 34 25 26 27 28 17112 7041 21STS 1,0771 00 3.00 10 ST 27123 00 90 041936 RUG 1522403 24023 1. SI . 34 WS 600 30