C-3 1-21-10 RS Peach Blossom Cologne Company Inventory Observation memo December 31, 2009 I arrived at the client’s plant at 1308 Bee Hive Boulevard, Chicago, Illinois, at 8:00 AM on January 1, 2010, to observe the client’s physical inventory. The plant was closed this day for the inventory counting. I reviewed the client’s inventory instructions, which appeared adequate. I then observed the client personnel as they took a 100% inventory. I recorded test counts on (C-2) for later tracing to the client’s final priced inventory. The client’s housekeeping was good and the inventory neat and orderly to facilitate an accurate count. The client’s plant is divided into two inventory areas:
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