Question

Fancy Flooring Inc. began the current month with inventory costing $25,000, then purchased inventory at a cost of $180,000. The perpetual inventory system indicates that inventory costing $120,000 was sold during the month for $140,000. If an inventory count shows that inventory costing $90,000 is actually on hand at month-end, what amount of shrinkage occurred during the month?

Answer 1

There was no shrinkage occurred during the month.

Step-by-step explanation:

Inicial Inventory: $25,000

+ Purchased: $180,000

- Sold: $120,000

= Final Inventory: $85.000

Inventory Count: $90.000 then, there is not shrinkage.