Question

You own an electronics store with a merchandise book value of $245,000. You conduct a physical inventory and find the value to be $237,000. Your total sales between inventories totaled $360,000. Calculate the shrinkage as a percentage of sales.

Answer 1

To calculate the shrinkage as a percentage of sales, subtract the physical inventory value from the book value and then divide it by the total sales. In this case, the shrinkage is 2.22%.

Step-by-step explanation:

To calculate the shrinkage as a percentage of sales, you need to find the difference between the book value of the merchandise and the physical inventory value. In this case, the book value is $245,000 and the physical inventory value is $237,000, so the shrinkage is $245,000 - $237,000 = $8,000.

Next, divide the shrinkage by the total sales between inventories. The total sales is $360,000, so the shrinkage as a percentage of sales is ($8,000 / $360,000) x 100% = 2.22%.

Answer 2

0.22% shrinkage as a percent of sales.

To calculate shrinkage you subtract the physical inventory value from the book value.

245,000-237,000 = 800

The shrinkage was $800. To find the shrinkage as a percent of sales take the shrinkage value and divide it by the sales value to get shrinkage as a percentage of sales.

800 / 360,000 = 0.0022....

Multiply Decimal by 100 to get the percentage

100 * 0.0022.... = 0.22%