Question
You attended the inventory count of your client Davis Hydraulics Ltd. You observed the following during the count. Warehouse staff counted specific areas of the
You attended the inventory count of your client Davis Hydraulics Ltd. You observed the following during the count.
-
Warehouse staff counted specific areas of the stock as determined by the warehouse supervisor; staff members, including the warehouse supervisor, were allocated their own area to count.
-
Several blank paper sheets were issued to count staff for recording stock counted.
-
Staff were instructed to write down the stock description and number counted.
-
Staff were told to write the stock quantities in pencil on the sheets to ensure errors can be
corrected.
-
Any staff that completed a section early were allocated to another area to help out one of the
other staff.
-
The supervisor collected all sheets at the end of the count to finalise the stock count
REQUIRED: (a) List the procedures that should be adopted in a physical inventory count.
(b) Identify the weaknesses (at least 5) in the stocktake procedures above and identify how they could be improved .
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started