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what is the misstatement in valuation? How do i kn...

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what is the misstatement in valuation? How do i know whether the inventory is overstated or understated? What is the projected misstatement in the entire population?,Thanks for your help. I am still have questions on my assignment. Could you please explain the calculation for freight cost and the total units under/overstated for both question 1 and 2. Thanks.,for question 3. I also need more explanation. the formula for projected misstatement = (misstatement in sample/ book amount in sample) x population book amount is the mean: Projected misstatement = (misstatement in sample/ 1050 + 6050) / 1000000 is the number i plug in correct? How do i find the misstatement in sample? Thanks.,In the description, it said "Freight is part of the cost of your product and is allocated based on the quantity shipped." For question 1, the total freight cost on Oct invoice is $225, and the quantity purchased is (250 + 2,000). Should the freight charge for each unit equal 0.1. Therefore, the total cost for each unit is $5.01 = $5 + $0.1. On the financial statement, each unit is $5.25. Should the over-valued amount be 0.24 = $5.25 - $5.01 instead of 0.4 = $5.29 - $5.25 (as you said it is under-valued. I still don't get the part of $5.29. Could you please show me your calculation. Thanks.,For question 2, This is what i did: 10/15/1X 2,000 units $1.90 $3,800 --> unit cost included freight $1.91 11/26/1X 2,400 units $2.00 $4,800 --> unit cost included freight $2.01 12/06/1X 1,900 units $2.22 $4,218 --> unit cost included freight $2.23 Ending inventory: 12/31/1X 2,600 units $2.372 $6,050 Over-valued amount = $6,050 - [($2.23 x 1,900 units) + ($2.01 x 700units)] = $406 I don't get the part of $2.352. Could you please show me your calculation? Thanks.

 

Paper#2929 | Written in 18-Jul-2015

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