St. Book Shop's unadjusted Merchandise Inventory at June 30, 2018 was $ 5 comma 600. The cost associated with the physical cou
nt of inventory on hand on June 30, 2018, was $ 5 comma 500. In addition, Morgan St. Book Shop estimated approximately $ 1 comma 200 of merchandise sold will be returned with a cost of $ 550.
Journalize the adjustment for inventory shrinkage.
Journalize the adjustment for inventory shrinkage.
1 answer:
Inventory shrinkage is the shortage of inventory in physical count when compared with the system records.
Explanation:
Write down the values given in the question
St. Book Shop's unadjusted Merchandise Inventory at June 30, 2018 was $ 5 comma 600.
he cost associated with the physical count of inventory on hand on June 30, 2018, was $ 5 comma 500.
Morgan St. Book Shop estimated approximately $ 1 comma 200 of merchandise sold will be returned with a cost of $ 550.
the adjustment for inventory shrinkage is explained in the table attached
The amount that is credited and debited are are found by following the
Note : Inventory shrinkage is the shortage of inventory in physical count when compared with the system records.
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Answer:
$18,400
Explanation:
Using the appropriate cost driver <u><em>(which is the most appropriate method of determining or calculating a particular cost. The Variable cost drivers might come in the form of costs per unit, hourly costs, or batch costs, among others. it can also be fixed costs, which could be in form of set-up costs.),</em></u> the total cost of the potential job will be $18,400
The full diagram explaining the step be step procedure is in the attached image below.
