Homework SourseA retailers inventory shows the following figures Opening Ph
A retailer’s inventory shows the following figures:
Opening Physical Inventory.. $195,000
Purchases.. $254,000
Net Sales.. $325,000
Customer Returns.. $41,000
Returns to Vendor.. $15,000
Markdowns.. $63,000
Markdown Cancellations.. $8,000
Employee Discounts.. $4,000
Additional Markups.. $5,000
Closing Physical Inventory.. $99,500
What was the shortage/overage dollars and percentage (round your final % answer to two decimal places)?
$3,000 Shortage; 0.92% Shortage
$3,500 Shortage; 1.08% Shortage
$3,000 Overage; 0.92% Overage
$3,500 Overage; 1.08% Overage
| A. | $3,000 Shortage; 0.92% Shortage | |
| B. | $3,500 Shortage; 1.08% Shortage | |
| C. | $3,000 Overage; 0.92% Overage | |
| D. | $3,500 Overage; 1.08% Overage |
Solution
SOLUTION
Correct option is - $3,500 Overage; 1.08% Overage
Calculation of book inventory-
Shortage / Overage of inventory Dollar-
Percentage= 3,500 / 325,000 = 1.08%
| Particulars | Amount ($) |
| Opening physical inventory | 195,000 |
| Add: Purchases | 254,000 |
| Customer Returns | 41,000 |
| Markdown Cancellations | 8,000 |
| Additional Markups | 5,000 |
| Less: Net sales | (325,000) |
| Returns to Vendor | (15,000) |
| Markdowns | (63,000) |
| Employee Discounts | (4,000) |
| Book inventory | 96,000 |
