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

Ending inventory = $10,000 + $35,000 - $30,000 = $15,000.$15,000 - $14,500 (actual count)= $500 shrinkage.

The Tuck Shop Began the Current Month with Inventory Costing