The Tuck Shop began the current month with inventory costing $10,000,then purchased inventory at a cost of $35,000.The perpetual inventory system indicates that inventory costing $30,000 was sold during the month for $40,000.If an inventory count shows that inventory costing $14,500 is actually on hand at month-end,what amount of shrinkage occurred during the month?
A) $500
B) $5,000
C) $14,495
D) $15,000

Question

Quizplus · Accepted Answer

The beginning inventory ($10,000) plus purchases ($35,000) equals $45,000. After selling inventory costing $30,000, $15,000 should remain. The actual inventory is $14,500, indicating a shrinkage of $500 ($15,000 - $14,500).

The Tuck Shop Began the Current Month with Inventory Costing