Flynn Company uses a perpetual inventory system and reported $516,500 of invento
ID: 2489893 • Letter: F
Question
Flynn Company uses a perpetual inventory system and reported $516,500 of inventory at the beginning of the month based on a physical count of inventory. During the month, the company bought $44,000 of inventory and sold inventory that had cost $31,250. At the end of the month, the physical count of inventory shows $525,000 on hand. How much shrinkage occurred during the month?
$35,500
$27,000
$4,250
$8,500
Flynn Company uses a perpetual inventory system and reported $516,500 of inventory at the beginning of the month based on a physical count of inventory. During the month, the company bought $44,000 of inventory and sold inventory that had cost $31,250. At the end of the month, the physical count of inventory shows $525,000 on hand. How much shrinkage occurred during the month?
Explanation / Answer
Opening inventory 516,500
Add purchase 44,000
Less: Inventory sold 31,250
Closing inventory as per record : 529,250
Actual inventory on hand : 525,000
Shrinkage $ 4,250