part 6

Question 1

reasons for differences between physical inventory counts and perpetual inventory records

Answer 1

obsolenscence or other cause of decline in market value, damage, misclassification, quality issues

Question 2

possible analytics quenstions for inventory

Answer 2

does inventory physical count match the client’s general ledger account (reconciliation)

are there any inventory items which should not be included in the inventory (cutoff analysis)

are there duplicates or omissions in source documents (duplicates and omissions)

Question 3

perpetual_inventory_ledger

Answer 3

clients books inventory counts

Question 4

get the client’s books inventory unit cost and total inventory value

Answer 4

inner_join pepertual_inventory_ledger with the sales_journal by = ‘sku’

Question 5

code line to find out total inventory in books

Answer 5

mutate(inv_value = stock_on_hand * unit cost) (from perpetual_inventory_ledger and sales_journal)

Question 6

code line to find out total inventory in real life

Answer 6

mutate(inv_value = ye_stock_on_hand * unit__cost.x) (from real_world_ye_inventory)

Question 7

get the difference between physical count and books

Answer 7

left_join perpetual_inventory_ledger with real_world_ye_inventory by = ‘sku’. filter(exception != ‘no exception, count is accurate’)

Question 8

find sales cutoff errors

Answer 8

filter(invoice_date <= fyear_end & shipper_date > fyear_end) (from sales_journal)

Question 9

verify that non of cutoff errors were included in Y/E inventory are received after year end so they should not be included in this year’s inventory

Answer 9

left_join perpetual_inventory_ledger with ap_ledger by = ‘sku’ . Filter(receiver_date > fyear_end)

Question 10

omitted variables

Answer 10

missing values