Flynn Company uses a perpetual inventory system and reported $526,000 of inventory at the beginning of the month based on a physical count of inventory. During the month, the company bought $52,000 of inventory and sold inventory that had cost $45,500. At the end of the month, the physical count of inventory shows $530,000 on hand. How much shrinkage occurred during the month? a. $2,500 b. $48,000 c. $4,000 d. $43,000

Flynn Company uses a perpetual inventory system and reported $526,000 of inventory at the beginning of the month based on a physical count of inventory. During the month, the company bought $52,000 of inventory and sold inventory that had cost $45,500. At the end of the month, the physical count of inventory shows $530,000 on hand. How much shrinkage occurred during the month? a. $2,500 b. $48,000 c. $4,000 d. $43,000

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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