Carson Company uses a perpetual inventory system and reported $725,000 of inventory at the beginning of the month based on a physical count of inventory. During the month, the company purchased $63,000 of inventory and sold inventory that had cost $58,000. At the end of the month, the physical count of inventory shows $724,000 on hand. How much shrinkage occurred during the month? a. $6,000 b. $67,000 c. $1,000 d. $52,000

Carson Company uses a perpetual inventory system and reported $725,000 of inventory at the beginning of the month based on a physical count of inventory. During the month, the company purchased $63,000 of inventory and sold inventory that had cost $58,000. At the end of the month, the physical count of inventory shows $724,000 on hand. How much shrinkage occurred during the month? a. $6,000 b. $67,000 c. $1,000 d. $52,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 3RE: Reid Company uses the periodic inventory system. On January 1, it had an inventory balance of...

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