**3-a.** What is the dollar amount of shrinkage that you were able to determine in the periodic inventory system?**3-b.** What is the dollar amount of shrinkage that you were able to determine in the perpetual inventory system?**Table: Shrinkage Analysis**| Inventory System | Amount of Shrinkage ||------------------------------|---------------------|| Periodic inventory system | || Perpetual inventory system | |*Explanation:* The table presents two types of inventory systems—periodic and perpetual—and provides a space to input the dollar amount of shrinkage identified in each system. Shrinkage refers to the loss of inventory that can occur due to factors like theft, loss, damage, or administrative error. ### Required Information**[The following information applies to the questions displayed below.]**Home Hardware reported a beginning inventory of 35 shovels, for a total cost of $175. The company had the following transactions during the month:- **January 2**: Sold 9 shovels on account at a selling price of $10 per unit.- **January 16**: Sold 12 shovels on account at a selling price of $10 per unit.- **January 18**: Bought 4 shovels on account at a cost of $5 per unit.- **January 19**: Sold 12 shovels on account at a selling price of $10 per unit.- **January 24**: Bought 12 shovels on account at a cost of $5 per unit.- **January 31**: Counted inventory and determined that 15 units were on hand.

Periodic inventory system and perpetual inventory system are two types of inventory systems that are…

Answered: 3-a. What is the dollar amount of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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2) Sea Travel sells motor boats. One of Sea Travel's most popular models is the Wing. During the current year, Sea Travel purchased 24 Wings at the following costs. Total cost Unit Cost $7000 $7100 $7250 Purchase Date Units Purchased May 2 May 20 May 25 $28,000 14,200 4 8 58000 June 5 10 $7300 73000 24 $173,200 On May 28, Sea Travel sold 11 Wings to the jack Sport racing team. Compute a) the cost of goods sold on May 28 and b) The ending inventory of Wing boats at June 5, using the following cost flow assumptions: c) Prepare journal entries to record the cost of the 11 wings sold on May 28, assuming that the company uses the:
Required:Hemming uses a perpetual inventory system. 3. Compute the gross margin for FIFO method and LIFO method.
Subject :- Account
8/ Which of the following term is referred as the inventory cost to the seller of the goods sold to customers? a. Income statement b. Inventory c. Balance sheet d. Cost of goods sold
Explain the differences between a Perpetual Inventory system and a Periodic Inventory System. Explain how one is better than the other.
What is the inventory system called that continuously discloses the amount of inventory? Group of answer choices physical perpetual retail periodic
Question 12 Which report shows the book (purchase or cost) value of inventory items with quantity on hand? Product/Service List O Transaction List by Inventory Item Sales by Product/Service Summary O Inventory Valuation Summary (or Detail)
Which inventory system would have a purchases account? Group of answer choices Perpetual FIFO LIFO Periodic
Q-1: What is Perpetual and Periodic Inventory System? Explain the differences between both. Record all the transactional entries for the sales and purchases of inventory.
The account used to adjust the perpetual inventory records when a difference exists between the physical count and the amount in the perpetual inventory records is called a. Inventory Short and Over. b. Estimated Returns Inventory. c. Inventory Shrinkage. d. Merchandise Inventory
Briefly contrast the accounting procedures in perpetual andperiodic inventory systems.
2) Sea Travel sells motor boats. One of Sea Travel's most popular models is the Wing. During the current year, Sea Travel purchased 24 Wings at the following costs. Total cost Unit Cost $7000 $7100 $7250 Purchase Date Units Purchased May 2 May 20 May 25 $28,000 14,200 4 8 58000 June 5 10 $7300 73000 24 $173,200 On May 28, Sea Travel sold 11 Wings to the jack Sport racing team. Compute a) the cost of goods sold on May 28 and b) The ending inventory of Wing boats at June 5, using the following cost flow assumptions: c) Prepare journal entries to record the cost of the 11 wings sold on May 28, assuming that the company uses the:

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3-a. What is the dollar amount of shrinkage that you were able to determine in periodic inventory system? 3-b. What is the dollar amount of shrinkage that you were able to determine in perpetual inventory system? Amount of shrinkage Periodic inventory system Perpetual inventory system