P
W 11. 3A BI LTRI TE BI CYCLES, I NC. Pr epar ed by :
Pr obabi l i t y Pr opor t i onal t o Si z e Sampl i ng Pl an Dat e:
Fac t or y Equi pment Rev i ewed by :
Dec ember 31, 2007 Dat e:
Debi t pos t i ngs t o f ac t or y equi pment :
Dol l ar amount $12, 600, 000. 00
Number of i t ems ac qui r ed 1, 246
Ri s k of i nc or r ec t ac c ept anc e 5. 00%
Rel i abi l i t y f ac t or 3. 00
Ex pans i on f ac t or 1. 60
Ex pec t ed mi s s t at ement
Tol er abl e mi s s t at ement
Sampl i ng i nt er v al
Sampl e s i z e
P
W 11. 3B BI LTRI TE BI CYCLES, I NC. Pr epar ed by :
Pr obabi l i t y Pr opor t i onal t o Si z e Sampl i ng Pl an Dat e:
Fac t or y Equi pment Rev i ewed by :
Pr oj ec t ed Mi s s t at ement Dat e:
Dec ember 31, 2007
( 6)
( 1) ( 2) ( 3) ( 4) ( 5) Mos t Li k el y
Tai nt i ng % Sampl i ng Mi s s t at ement
$ Number Vendor Book Val ue Audi t ed Val ue Er r or ( BV- AV) ( BV- AV) / BV I nt er v al ( 4) x ( 5)
or
372134 Lox l ey Mac hi ne W k s , Lt d. $1, 665, 800 $145, 200 $1, 520, 600 0. 00% $0 $1, 520, 600
1778927 Ger al d Equi pment and Par t s , I nc . $23, 660 $0 $23, 660 0. 00% $0 $23, 660
3668498 Cr adl e Cor por at i on $985, 300 $512, 000 $473, 300 0. 00% $0 $473, 300
6333750 Dor r ' s Mac hi ne Par t s and Repai r s $12, 000 $0 $12, 000 0. 00% $0 $12, 000
el
9873625 J ohns on' s W di ng and Mac hi ni ng $155, 700 $100, 000 $55, 700 0. 00% $0 $55, 700
10224680 Lai dl ow Par t s and Repai r s $287, 900 $125, 000 $162, 900 0. 00% $0 $162, 900
11440670 J opl i n Mac hi ner y $1, 466, 800 $1, 224, 500 $242, 300 0. 00% $0 $242, 300
12143770 Dr ex l e Fr ei ght Handl er s $12, 600 $0 $12, 600 0. 00% $0 $12, 600
------------ ------------
$2, 503, 060 $2, 503, 060
============ ============
P
W 11. 3C BI LTRI TE BI CYCLES, I NC. Pr epar ed by :
Pr obabi l i t y Pr opor t i onal t o Si z e Sampl i ng Pl an Dat e:
Fac t or y Equi pment Rev i ewed by :
Comput ed Pr ec i s i on and Upper Mi s s t at ement Li mi t Dat e:
Dec ember 31, 2007
Bas i c Pr ec i s i on $0
I nc r ement al Al l owanc e f or Sampl i ng Er r or
( 1) ( 2) ( 3)
Rank ed I nc r ement al I nc r ement al
Pr oj ec t ed Rel i abi l i t y Al l owanc e
$ Number Vendor Er r or s Fac t or - 1 ( 1) x ( 2)
$0
$0
$0
$0
===
I nc r ement al Al l owanc e f or Sampl i ng Ri s k $0
===
Upper Mi s s t at ement Li mi t
=====
Audi t Adj us t ment No. 1
5100 Cos t of Goods Sol d- Gr and Pr i x Tour i ng Bi k e $378, 514
5200 Cos t of Goods Sol d- Phoeni x Tour i ng Bi k e $361, 537
5300 Cos t of Goods Sol d- Pi k e' s Peak Mount ai n Bi k e $984, 346
5400 Cos t of Goods Sol d- Hi mal ay a Mount ai n Bi k e $242, 559
ai
5500 Cos t of Goods Sol d- W s t l i ner St at i onar y Bi k e $536, 103
1530 Fac t or y Equi pment $2, 503, 060
To adj us t f ac t or y equi pment and c os t of goods s ol d ac c ount s
f or r epai r s er r oneous l y debi t ed t o f ac t or y equi pment .
The al l oc at i on i s i n pr opor t i on t o t he r el at i v e amount s
of c os t of goods s ol d, as f ol l ows :
ACCOUNT AMOUNT
NUMBER ( t hous ands ) PERCENT
Cos t of Goods Sol d:
5100 $34, 448 15%
5200 $32, 903 14%
5300 $89, 584 39%
5400 $22, 075 10%
5500 $48, 790 21%
------------ ------------
$227, 800 100%
============ ============
NOTE TO I NSTRUCTOR:
I nas muc h as ov er head has been appl i ed t o i nv ent or i es and
c os t of s al es f or 2007, any audi t adj us t ment s af f ec t i ng ov er head
ar e r ef l ec t ed i n t he c os t of goods s ol d ac c ount s .