Question
You are auditing the financial statements of TV Land Trading for the year ended December 31, 2019. TV Land which uses the FIFO inventory method.
You are auditing the financial statements of TV Land Trading for the year ended December 31, 2019. TV Land which uses the FIFO inventory method. The inventory for the Mega widescreen TV shows 1,263 units at $782 for a total of $987,666. When you look at the invoices for the TVs, you see the following:
| Inventory Number | Date | Quantity |
| Unit Price |
| Total | |||||
| 12732 | 11/22/14 | 1,000 |
| $ | 765 |
|
| $ | 765,000 |
| |
| 12844 | 12/03/14 | 800 |
|
| 778 |
|
|
| 621,600 |
| |
| 12905 | 12/28/14 | 600 |
|
| 783 |
|
|
| 469,200 |
| |
|
| |||||||||||
Required: 1. Determine if the auditors need to recommend an adjustment for the cost of inventory. State yes/no and amount. Either way, show your working
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Accounting for Governmental and Nonprofit Entities
Authors: Jacqueline L. Reck, James E. Rooks, Suzanne Lowensohn, Daniel Neely
18th edition
1260190080, 1260190083, 978-1259917059
