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working on a class projectProblemsSHORTAGE AND OVERAGE Module Six: SHORTAGE AND OVERAGE

working on a class project

Problems

SHORTAGE AND OVERAGEModule Six: SHORTAGE AND OVERAGE
Correct formula and answer
1. Calculate the shortage % for the jewelry department if shortage $ are $482 and net sales for the year are $6,550.One or more formula errors
Shortage $Net Sales $Shortage %Wrong formula or no formula
$482$6,550
2. Physical inventory for the shoe department was $1,975,000 with a book inventory showing $2,260,000. Net sales for shoes for the year are $6,850,000. Was there a shortage or overage? What is the shortage or overage dollar amount and percentage?
Closing book inventoryPhysical inventoryShortage/Overage $Shortage or Overage list below
$2,260,000$1,975,000
Shortage $Net sales $Shortage %
$0$6,850,000
3. Find the shortage or overage percentage using the following data:
Opening inventory (retail) $1,404,000
Net sales $442,000
Vendor returns $4,000
Transfers to branches $8,000
Employee discounts $1,000
Purchases (at retail) $495,000
Markdowns $146,000
Closing physical inventory $1,287,000
Yearly net sales $2,875,000
AdditionsRetail $ReductionsRetail $
Purchases$495,000Net sales$442,000
Returns to vendors$4,000
Markdowns$146,000
Employee Disc.$1,000
Transfers To$8,000
Totals
Opening Book Inventory$1,404,000
+ Additions
-Reductions
=Closing book inventory
Closing book inventoryPhysical inventoryShortage/Overage $Shortage or Overage list below
$0$1,287,000
Overage $Net sales $Overage %
$0$2,875,000
4. The merchandise plan for fall shows planned sales of $1,135,000, with an estimated shortage of 1.7%. What is the planned dollar shortage for fall?Planned sales $Planned shortage %Planned shortage $
$1,135,0001.7%
5. Find the following:
a. January closing book inventory given the following:
January sales $423,000
January markdowns $140,000
January receipts $230,000
January BOM $2,861,000
b. A physical inventory was taken and the actual inventory is $2,400,000. Is there a shortage or overage, and by how much in dollars?
c. If the yearly net sales are $5,600,000, what is the shortage or overage %?
a.AdditionsRetail $ReductionsRetail $
Purchases$230,000Net sales$423,000
Markdowns$140,000
Total$230,000
Opening Book Inventory$2,861,000
+ Additions$230,000
-Reductions$0
=Closing book inventory
b.Closing book inventoryPhysical inventoryShortage/Overage $Shortage or Overage list below
$0$2,400,000
c.Shortage $Net sales $Shortage %
$0$5,600,000

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