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SEA GULL AIRFRAMES, INC.
SUMMARY OF INVENTORY MISSTATEMENTS
QUANTITY PRICE Amount
Per Differ- Per Differ- Recorded Correct of
Item No. and Description Inventory Correct ence Inventory Correct ence Amount Amount M/S
A. L37 Spars 3000 3000 0 8.00 8.00 0.0000 24000.00 24000.00 0.00
B. B68 Metal Formers 10000 833 9167 1.20 1.3875 -0.1875 12000.00 1155.79 -10844.21
C. R01 Metal Ribs 1500 1500 0 10.00 10/9.50 0.5000 15000.00 14750.00 -250.00
D. St26 Struts 1000 1000 0 8.00 8/8.20 -0.2000 8000.00 8040.00 40.00
E. Industrial hand drills 45 45 0 20.00 20.00 0.0000 900.00 900.00 0.00
F. L803 Steel Leaf Springs 40 80 -40 69.00 69.00 0.0000 276.00 5520.00 5244.00
G. V16 Fasteners 5.50 5.50 0 10.00 10.00 0.0000 55.00 55.00 0.00
Total misstatement -5810.21
Items over $5000 -11054.21
Items under $5000 5244.00
-5810.21
Remarks
A. NRV [assumed] exceeds cost.
B. Quantity based on inches, not feet;
freight not included.
C. 500 yards overpriced.
D. 200 feet underpriced. NRV [assumed] O.K.
E. [Assumed] not capitalizable.
F. Includes extension error in inventory.
G. Consider separately for obsolescence.
CONCLUSION:
There is a material potential misstatement
due to the number and size of misstatements found
relative to the sample chosen. In order
to determine a more accurate estimate
of the actual misstatement, additional
tests are necessary.
PROJECTED MISSTATEMENTS:
Over Under
Dollars tested: $5,000 $5,000
No exceptions 360,000 2,600
Exceptions:
A 24,000
B 12,000
C 15,000
D 8,000
E 900
F 276
G 55
Total dollars tested 419,000 3,831
Projected misstatement ignoring sampling risk:
Over $5,000 -109,487
Under $5,000 5,646,437
SEA GULL AIRFRAMES, INC.
SUMMARY OF INVENTORY MISSTATEMENTS
