A retailer uses a stock-counting-based physical inventory system.Its beginning inventory on January 1 is 370 units and total purchases in January are 155 units.Sales for January are 265 units.A physical count of goods as of February 1 reveals 243 units.Stock shortages for the period equal _____.

Question

Quizplus · Accepted Answer

To calculate the stock shortages, we need to use the following formula:

Beginning inventory + Purchases - Sales - Ending inventory = Stock shortages

We are given:
Beginning inventory on January 1 = 370 units
Total purchases in January = 155 units
Sales for January = 265 units
Physical count of goods as of February 1 = 243 units

Using the formula:

370 + 155 - 265 - 243 = 17

Therefore, the stock shortages for the period equal 17 units.

The correct answer is B.

A Retailer Uses a Stock-Counting-Based Physical Inventory System