Step by step answer MetroRetail's perpetual inventorysystem shows 2,000 units, but physicalcount reveals 1,850 units. Each unitcosts $40. What is the amount ofinventory shrinkage.

Explanation of Perpetual Inventory System: A perpetual inventory system is a method of continuously…

Answered: Metro Retail's perpetual inventory…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 2TP: Assume your company uses the periodic inventory costing method, and the inventory count left out an...

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One hundred units of inventory on hand at the end of the year are recorded at their cost of $10each using LIFO. Current replacement cost is $8.00.How would the Gross profit be affected by the adjusting entry needed under lower-of-cost-or-market?
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The purchase price of an item of inventory is $25 per unit. In each three month period the usage of the item is 20,000 units. The annual holding costs associated with one unit equate to 6% of its purchase price. The cost of placing an order for the item is $20. What is the Economic Order Quantity (EOQ) for the inventory item to the nearest whole unit?
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Sales during the year were 1,220 units. Beginning inventory was 380 units at a cost of $6 per unit. Purchase 1 was 610 units at $7 per unit. Purchase 2 was 940 units at $8 per unit. Required: a. Assume the periodic inventory system is used. Calculate cost of goods sold and ending inventory using FIFO method. (Enter all values as a positive value.) b. Assume the periodic inventory system is used. Calculate cost of goods sold and ending inventory using LIFO method. (Enter all values as a positive value.)
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Metro Retail's perpetual inventory system shows 2,000 units, but physical count reveals 1,850 units. Each unit costs $40. What is the amount of inventory shrinkage.