A retailer's ending retail book value of inventory is $165,000.A physical inventory (at retail)equals $177,000.The retailer ________.

Question

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The physical inventory (at retail) is greater than the ending retail book value of inventory, which indicates an overage. The difference between the two values is $12,000, therefore the retailer has a stock overage of $12,000. Switching from LIFO to FIFO or vice versa would not affect the retail value of the inventory. A stock shortage would be indicated if the physical inventory was less than the ending retail book value of inventory.

A Retailer's Ending Retail Book Value of Inventory Is $165,000