Question

How do you calculate the adjustment for inventory shrinkage? For example, the problem says "A physical inventory account resulted in the following counts: desk lamps, 1984; table lamps, 5,993; and floor lamps, 8,900." What information would you need to get to the answer which is 302?

C. A physical inventory account resulted in the following counts: desk lamps lamps, 5,993, and floor lamps, 8,900. Review the perpetual record for desk lamps you prepared above Review the perpetual record for table lamps you prepared above Review the perpetual record for floor lamps you prepared above Date Dec 31 Accounts and Explanation Cost of Goods Sold Merchandise Inventory Adjustment for inventory shr

Answer 1

Inventory shounkage state - Diecasded inventory - actual inventory srecorded inventory. x 100 Inventory shoun kage is when your business has less inventory that what you recorded in books, Reasons for inventoay shrinkage; ingen -) expired products, which are naturally no longer sellable - damaged items. -) employee eurons (miscount) Theft, fraud et

Er Let say you recorded $50000 in inventory value your cost of goods sold is $12000. your inventory book value should be $50000 - $12000 = $38000). How exer due to sheinkage your actual inventary value = $35000. inventory shrinkage rate = $38000 - $35000 x 100 = 7-9, $38000 This means you lost 7.9% of your inventory value due to shrinkage - 38000x 7.9% = $3000/-

To get the answer which is $ 302, we need following information, 1) cost of good fold 2) Recorded value of inventory 3) actual inventory