The Tuck Shop began the current month with inventory costing $14,250, then purch

Question

The Tuck Shop began the current month with inventory costing $14,250, then purchased inventory at a cost of $41,000. The perpetual inventory system indicates that inventory costing $40,310 was sold during the month for $48,000. If an inventory count shows that inventory costing $14,100 is actually on hand at month-end, what amount of shrinkage occurred during the month?

$14,095.

$7,000.

$840.

$14,940.

The Tuck Shop began the current month with inventory costing $14,250, then purchased inventory at a cost of $41,000. The perpetual inventory system indicates that inventory costing $40,310 was sold during the month for $48,000. If an inventory count shows that inventory costing $14,100 is actually on hand at month-end, what amount of shrinkage occurred during the month?

Explanation / Answer

Calculate amount of inventory shrinkage :

So answer is c) $840

Beginning inventory 14250 Purchase 41000 Less: Cost of goods sold -40310 Ending inventory 14940 Actual inventory on hand -14100 Inventory shrinkage 840

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