Inventory was taken and the count was $2,316,000. Is there a shortage or overage and by...

Question

Question

Inventory was taken and the count was $2,316,000. Is there a shortage or overage and by how much in dollars if the net sales are $13,350,000?

January sales are $688,000

January markdowns are 75.0%

January receipts are $1,155,000

January returns to vendor are $136,000

January BOM is $2,956,000

business accounting

Answer 1

Answer #1

Solution:

January closing BOM = January BOM + january receipts - january sales - january markdowns - january returns to vendor

= $2956000 + $1155000 - $688000 - (2956000*75%) - $136000

= $1,070,000

Physical count = $2316,000

There is overage of = $2316000 - $1070000 = $1,246,000

Answer 2

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