Answer:
Amount of shrinkage=$500.
Explanation:
Given Data:
Beginning Inventory Cost=$10,000
Purchased Inventory cost=$35,000
Inventory Sold=$30,000
On-hand Ending Inventory=$14,500
Required:
Amount of shrinkage=?
Solution:
Shrinkage is the difference between the total ending inventory balance and ending inventory on hand.
Total Ending inventory=Beginning Inventory+Purchased Inventory -Inventory Sold.
Total Ending inventory=$10,000+$35,000-$30,000
Total Ending inventory=$15,000
Amount of shrinkage=Total Ending inventory- On hand Ending Inventory
Amount of shrinkage=$15,000-$14,500
Amount of shrinkage=$500.
