I don’t have the actual Dunbar Incorporated inventory data.
If you paste the records, I can map each issue to a specific concept with a precise example.
In the meantime, here is a ready-to-use template: concept + one clear example.
– Cutoff errors at period end
–
Example:
Goods received on the last day of the period are recorded in the next period, understating ending inventory.
– Physical count vs.
records discrepancy
–
Example:
Physical count shows 1,200 units, ledger shows 1,350; 150 units difference needs adjustment.
– Net realizable value (NRV)/obsolescence not recognized
–
Example:
300 units of outdated inventory are valued at cost instead of NRV, overstating assets.
– Inventory in transit misclassification
–
Example:
Items shipped FOB shipping point recorded as on-hand on arrival, causing overstatement.
– Consigned inventory inclusion
–
Example:
Consigned goods at a dealer included in Dunbar’s inventory, though Dunbar does not own them.
– Incorrect costing/valuation method
–
Example:
Using standard cost for items with actual costs higher than standard, inflating ending inventory and COGS misstatements.
– Unauthorized adjustments or shrinkage
–
Example:
A manual write-down to hit budget approved without proper authorization.
– Inventory theft/shrinkage not investigated
–
Example:
Count shows a 5–8% shortfall; no root-cause investigation conducted.
If you share the actual list or data from Dunbar’s inventory records, I’ll produce a precise, item-by-item mapping (concept + clear example) tailored to those specifics.