2. The following inventory information is for Derrald Company: Beginning Inventory 150 units @ $15 750 units @ $15 Purchases 225 units Ending Inventory Sales for the year totaled $15,000. Required a. Assume that a periodic inventory system is used. Compute the cost of goods sold. b. Now assume that a perpetual inventory system is used. The perpetual records indicate that the sales of $15,000 represent 625 units with a total cost of $9,375. How much inventory shrinkage would be recorded for the year? Use the same information given in (b). How much inventory shrinkage would be recorded using the periodic method? C.
2. The following inventory information is for Derrald Company: Beginning Inventory 150 units @ $15 750 units @ $15 Purchases 225 units Ending Inventory Sales for the year totaled $15,000. Required a. Assume that a periodic inventory system is used. Compute the cost of goods sold. b. Now assume that a perpetual inventory system is used. The perpetual records indicate that the sales of $15,000 represent 625 units with a total cost of $9,375. How much inventory shrinkage would be recorded for the year? Use the same information given in (b). How much inventory shrinkage would be recorded using the periodic method? C.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:2. The following inventory information is for Derrald Company:
Beginning Inventory
150 units @ $15
Purchases
750 units @ $15
225 units
Ending Inventory
Sales for the year totaled $15,000.
Required
a.
Assume that a periodic inventory system is used. Compute the cost of goods sold.
b. Now assume that a perpetual inventory system is used. The perpetual records indicate that the sales
of $15,000 represent 625 units with a total cost of $9,375. How much inventory shrinkage would be
recorded for the year?
Use the same information given in (b). How much inventory shrinkage would be recorded using the
periodic method?
C.
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