In 2013 Macys reported cost of goods sold of 169 2018 H2 Onl

2018 H2 Online ro to Inventory Systems Questlon 4 (of 7) value 3.00 points n 2013, Macy\'s reported cost of goods sold of $16.9 billion, ending inventory for 2013 of $7.9 billion, and ending inventory for the previous year (2012) of $7.6 billion Required: if the cost of inventory purchases was $17.9 billion, what was the cost of shrinkage during 2013? (Enter your answer in billions rounded to 1 decimal place) of billion Hints References eBook & Resources Hint #1 Check my work

Solution

Cost of goods sold = Opening inventory + Purchase – Closing Inventory – Cost of Shrinkage

Cost of goods sold = $16.9 billion

Opening inventory= $ 7.6 billion

Purchase= $ 17.9 billion

Closing Inventory= $ 7.9 billion

Cost of goods sold = Opening inventory + Purchase – Closing Inventory – Cost of Shrinkage

16.9 = 7.6 + 17.9 – 7.9 - Cost of Shrinkage

16.9 = 17.6 - Cost of Shrinkage

Cost of Shrinkage = 17.6 – 16.9

Cost of Shrinkage = 0.7 billion