32,400 59,000 d Sold Is are 10 percent of monthly purchases. oyee meals are 10 p
ID: 2517351 • Letter: 3
Question
32,400 59,000 d Sold Is are 10 percent of monthly purchases. oyee meals are 10 percent of monthly Required Calculate inventory at May 1, 20X8. 29,676 Problem 4 ne whether the following statements regarding inventory Determin false. 1. Expensiv 2. Invento guidelines are true or e items should be inventoried daily. tory should be kept in a locked storeroom, and every employee should have a key to access it. Inventory control forms should be made ahead of time so that when the inventory is checked periodically, the process will go smoothly. 4. Inventory records should be kept by an accountant who does not have access to the 5. The controller should be notified if there is a significant underage or overage in 6. The custodian of the inventory should have access to the inventory records so he or physical inventory. inventory she can be sure that the actual inventory matches the records. Problem 5Explanation / Answer
1.False. The custodian of inventory should ensure that there are no discrepencies between physical inventory and inventory as per books. It doesn't necessarily require that expensive items to be inventoried daily. even if the value of the inventory is low but the frequency of providing that inventory to the production department is more and in huge quantities, proper records of those supplies are to de ensured by the custodian.
2.False. Inventory need not be kept in a locked room, but every employee should not have access to the inventory. Certain persons are to be authorised for accessing the inventory.
3.False. Inventory control forms are to be issued only when inventory is supplied to the production department. If the forms are prepared, there is good chance of misuse of such forms.
4. True. Since, if the accountant who is maintaing inventory records is given access to physical inventory then he might misuse the inventory and change the records accordingly.
5. True. The controller should be notified of the underage or overage of the inventory so that necessary steps could be taken so that the vost of maintaining inventory will not be more.
6. False. Custodian need not have physical access to inventory to record the supplies or to maintain the records properly, since the quantity bought and issued will be sufficient to maintain the records properly.
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