Net sales for the misses' sportswear department were $359,000. Physical inventory was taken and the amount...

Question

Question

Net sales for the misses sportswear department were $359,000. Physical inventory was taken and the amount is $636,000. Book inventory shows S625,648. Was there a shortage or overage, and by how much in dollars? What is the shortage or overage 96? 8.

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Net Sales = $359,000
Book Value of Inventory = $625,648
Actual Value of Inventory = $636,000

Actual value of inventory is higher than the book value of inventory. So, there is an overage.

Overage = Actual Value of Inventory - Book Value of Inventory
Overage = $636,000 - $625,648
Overage = $10,352

Overage Percent = Overage / Net Sales
Overage Percent = $10,352 / $359,000
Overage Percent = 0.0288 or 2.88%

Add a comment

Answer 2

Similar Homework Help Questions

If a physical inventory was taken in January and the actual inventory is $209,400, is there...

If a physical inventory was taken in January and the actual inventory is $209,400, is there a shortage or overage and by how much in dollars? Net sales for the year is $153,800. January BOM $215,480 January Sales $26,675 January Markdowns $24,485 January Receipts $48,500
If a physical inventory was taken in January and the actual inventory is $209,400. Net sales...

If a physical inventory was taken in January and the actual inventory is $209,400. Net sales for the year is $153,800. What is the shortage or overage percentage? January BOM $215,480 January Sales $26,675 January Markdowns $24,485 January Receipts $48,500
Inventory was taken and the count was $2,316,000. Is there a shortage or overage and by...

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

Inventory was taken and the count was $2,316,000. Is there a shortage or overage and by how much in percentage if the ne...

Inventory was taken and the count was $2,316,000. Is there a shortage or overage and by how much in percentage 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
Alpha Company provided the following data concerning its income statement: sales, $920,000; purchases, $359,000; beginning inventory,...

Alpha Company provided the following data concerning its income statement: sales, $920,000; purchases, $359,000; beginning inventory, $240,000; ending inventory, $277,000; operating expenses, $111,000; freight-in, $5,000; sales discounts, $19,000; purchases discounts, $15,000; sales returns & allowances, $122,000; and purchases returns & allowances, $41,000. The data are complete and provide the basis for preparation of an income statement. How much is net income?
5. What causes shortage? Assume the following: Beginning Inventory: $ 33,456 Purchases/Receipts: 543,693 Sales: &nbs

5. What causes shortage? Assume the following: Beginning Inventory: $ 33,456 Purchases/Receipts: 543,693 Sales: 478,653 Retail Reductions: 67,543 The physical inventory yields a value of $25,432. Is the department over or short, and if so by how much? please show your work, thank you

Hanse, Inc., has a cash cycle of 37.5 days, an operating cycle of 51 days, and an inventory period of 21 days. The company reported cost of goods sold in the amount of $359,000, and credit sales were $582,000. What is the company’s average balance in acco

Hanse, Inc., has a cash cycle of 37.5 days, an operating cycle of 51 days, and an inventory period of 21 days. The company reported cost of goods sold in the amount of $359,000, and credit sales were $582,000. What is the company’s average balance in accounts payable and accounts receivable? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Toyland wishes to produce quarterly financial statements, but it takes a physical count of Inventory only...

Toyland wishes to produce quarterly financial statements, but it takes a physical count of Inventory only at year-end. The following historical data were taken from the Year 1 and Year 2 accounting records: Year Year Net sales Cost of goods sold $15e,88 19e,808 89,288 76,888 At the end of the first quarter of Year 3, Toyland's ledger had the followIng account balances: Sales Purchases Beginning inventory 1/1/Year 3 Ending inventory 3/31/Year 3 $218,806e 98,888 32,180 16,888 Based on purchases and...
The following production data were taken from the records of the Finishing Department for June: Inventory...

The following production data were taken from the records of the Finishing Department for June: Inventory in process, June 1 (30% completed) 4,000 units Completed units during June 65,000 units Ending inventory (60% complete) 7,000 units What is the number of material equivalent units of production in the June 30 Finishing Department inventory, assuming that the first-in, first-out method is used to cost inventories and materials were added at the beginning of the process? a. 68,000 units b. 76,000 units...

The following production data were taken from the records of the Finishing Department for June: Inventory...

The following production data were taken from the records of the Finishing Department for June: Inventory in process, June 1 (30% completed) 4,000 units Completed units during June 65,000 units Ending inventory (60% complete) 7,000 units What is the number of conversion equivalent units of production of the Finishing Department ? Group of answer choices 68,000 units 70,400 units 66,200 units 4,200 units

Net sales for the misses' sportswear department were $359,000. Physical inventory was taken and the amount...

Homework Answers

Add Answer to:
Net sales for the misses' sportswear department were $359,000. Physical inventory was taken and the amount...

Post as a guest

Earn Coins

If a physical inventory was taken in January and the actual inventory is $209,400, is there...

If a physical inventory was taken in January and the actual inventory is $209,400. Net sales...

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

Inventory was taken and the count was $2,316,000. Is there a shortage or overage and by how much in percentage if the ne...

Alpha Company provided the following data concerning its income statement: sales, $920,000; purchases, $359,000; beginning inventory,...

5. What causes shortage? Assume the following: Beginning Inventory: $ 33,456 Purchases/Receipts: 543,693 Sales: &nbs

Hanse, Inc., has a cash cycle of 37.5 days, an operating cycle of 51 days, and an inventory period of 21 days. The company reported cost of goods sold in the amount of $359,000, and credit sales were $582,000. What is the company’s average balance in acco

Toyland wishes to produce quarterly financial statements, but it takes a physical count of Inventory only...

The following production data were taken from the records of the Finishing Department for June: Inventory...

The following production data were taken from the records of the Finishing Department for June: Inventory...

Net sales for the misses' sportswear department were $359,000. Physical inventory was taken and the amount...

Homework Answers

Add Answer to: Net sales for the misses' sportswear department were $359,000. Physical inventory was taken and the amount...

Post as a guest

Earn Coins

Add Answer to:
Net sales for the misses' sportswear department were $359,000. Physical inventory was taken and the amount...