Question

Windsor, Inc. uses a perpetual inventory system and reported $548,000 of inventory at the beginning of the month. During the month, the company bought $50,000 of inventory and sold inventory that had cost $35,250. At the end of the month, the physical count of inventory shows $560,000 on hand. How much shrinkage occurred during the month

Answer 1

Answer:

$2750

Explanation:

How much shrinkage occurred during the month can be calculated as Summation of Beginning inventory recorded +Inventory bought during the month-Inventory sold-Physical inventory at end of month

$548,000+$50,000- $35,250- $560,000

=$2750

The amount of shrinkage occurred during the month is $2750