Problem:
Pies"R"Us is a family run company located in Barrie, Ontario engaged in the manufacture and sale of various baked goods, primarily apple pies. The company has a modern 110,000 square foot bakery (manufacturing facility). With 200 dedicated full-time employees, it has been making pies for customers across North America and beyond since 1975. Apples used by Pies"R"Us in their recipes are harvested (picked) between August and mid-October each year ("the Crop"). Pies"R"Us does not have their own orchards and instead rely on local growers to source apples for their pies. Purchases of the 2022 Crop have been made by mid-October. Pies"R"Us does not have sufficient cold-storage utilities in their own manufacturing facility, so a significant portion of the 2022 Crop was stored on the growers' orchards. You, CPA, have been assigned to the audit for the year ended October 31, 2022. You will be responsible for dealing with inventory (where professional judgment is required), including assessing appropriateness of valuation of apple inventory and analysis of write down, if necessary