Homework SourseThe Tuck Shop began the current month with inventory costing
The Tuck Shop began the current month with inventory costing $14,250, then purchased inventory at a cost of $41,000. The perpetual inventory system indicates that inventory costing $40,310 was sold during the month for $48,000. If an inventory count shows that inventory costing $14,100 is actually on hand at month-end, what amount of shrinkage occurred during the month?
$14,095.
$7,000.
$840.
$14,940.
| The Tuck Shop began the current month with inventory costing $14,250, then purchased inventory at a cost of $41,000. The perpetual inventory system indicates that inventory costing $40,310 was sold during the month for $48,000. If an inventory count shows that inventory costing $14,100 is actually on hand at month-end, what amount of shrinkage occurred during the month? |
Solution
Calculate amount of inventory shrinkage :
So answer is c) $840
| Beginning inventory | 14250 |
| Purchase | 41000 |
| Less: Cost of goods sold | -40310 |
| Ending inventory | 14940 |
| Actual inventory on hand | -14100 |
| Inventory shrinkage | 840 |
