b)

Sea Gull Airframes, Inc.

Summary of Inventory Statement

Quantity Price
Per Per Amount
Item No.and Invent Differe Inve Corr Differe Recorded Correct of
Description ory Correct nce ntory ect nce Amount Amount Mistake
A L37 spars 3000 3000 0 8.00 8.00 0 24,000.00 24,000.00 0
B68 1.38 -
B metalformers 10000 833 9167 1.20 75 -01875 12,000.00 1,155.79 10,884.21
10.0 10/9.
C R01 metal ribs 1500 1500 0 0 5 .50 15,000.00 14,750.00 -250.00
8/8.2
D St26 struts 1000 1000 0 8.00 0 -.20 8,000.00 8,040.00 40.00
Industrial 20.0 20.0
E hand drills 45 45 0 0 0 0 900.00 900.00 0
L803 steel leaf 69.0 69.0
F springs 40 80 -40 0 0 0 276.00 5,520.00 5,244.00
10.0 10.0
G v16 fasteners 5.50 5.50 0 0 0 0 55.00 55.00 0

Total
Misstatement -5,810.21
Items Over -
$5,000 11,054.21
Items Under
$5,000 5,244.00

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