Question

The Tuck Shop began the current month with inventory costing $19,000, then purchased inventory at a cost of $52,950. The perpetual inventory system indicates that inventory costing $57,128 was sold during the month for $56,850. If an inventory count shows that inventory costing $13,500 is actually on hand at month-end, what amount of shrinkage occurred during the month

Answer 1

Answer:

Inventory shrinkage = $1,322

Explanation:

We know,

Inventory shrinkage = Ending inventory - Actual inventory at hand

Given,

Actual inventory at hand = $13,500

Ending inventory = Beginning inventory + Purchase - Inventory sold(Costing price)

Or, Ending inventory = $19,000 + $52,950 - $57,128

Or, Ending inventory = $71,950 - $57,128

Or, Ending inventory = $14,822

Therefore,

Inventory shrinkage = Ending inventory - Actual inventory at hand

Or, Inventory shrinkage = $14,822 - $13,500

Or, Inventory shrinkage = $1,322