Windsor, Inc. uses a perpetual inventory system and reported $512,000 of inventory at the beginning of the month based on a physical count of inventory. During the month, the company bought $53,000 of inventory and sold inventory that had cost $48,000. At the end of the month, the physical count of inventory shows $515,000 on hand. How much shrinkage occurred during the month?

Question

Business

Gunnar Medina

2 November, 21:05

Windsor, Inc. uses a perpetual inventory system and reported $512,000 of inventory at the beginning of the month based on a physical count of inventory. During the month, the company bought $53,000 of inventory and sold inventory that had cost $48,000. At the end of the month, the physical count of inventory shows $515,000 on hand. How much shrinkage occurred during the month?

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Answers (1)

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Ramon · Answer 1

--Correct Answer = $ 2,000

Explanation:

the step by step Workings can be seen below

Beginning Inventory $512,000

Add: Purchases $53,000

Less: Cost of goods Sold $48,000

Ending Inventory as per perpetual method $517,000

Less: Ending Inventory as per physical count $515,000

Shrinkage amount $2,000