A retailer uses a stock counting-based physical inventory system.Its beginning inventory on January 1,2017 is 600 units; total purchases in January were 252 units.Sales for January were 325 units.A physical count of goods as of February 1,2017 revealed 500 units.Stock shortages for the period equal ________.

Question

Quizplus · Accepted Answer

The expected ending inventory is calculated as: Beginning Inventory (600) + Purchases (252) - Sales (325) = 527 units. The physical count shows 500 units, indicating a shortage of 27 units (527 - 500 = 27).

A Retailer Uses a Stock Counting-Based Physical Inventory System