Alvarado Company began the current month with inventory costing $18,000,then purchased inventory at a cost of $63,000.The perpetual inventory system indicates that inventory costing $54,000 was sold during the month for $72,000.If an inventory count shows that inventory costing $26,100 is actually on hand at month-end,what amount of shrinkage occurred during the month?
A)$900
B)$9,000
C)$26,091
D)$27,000

Question

Quizplus · Accepted Answer

The difference between the ending balance in the inventory account and the physical inventory count is the amount of possible shrinkage.
$18,000 + $63,000 − $54,000 = $27,000 ending inventory.
$27,000 − $26,100 (actual count)= $900 shrinkage.

Alvarado Company Began the Current Month with Inventory Costing $18,000,then