Net sales for the misses' sportswear department were $359,000. Physical inventory was taken and the amount...

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Net sales for the misses sportswear department were $359,000. Physical inventory was taken and the amount is $636,000. Book inventory shows S625,648. Was there a shortage or overage, and by how much in dollars? What is the shortage or overage 96? 8.

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Answer 1

Answer #1

Net Sales = $359,000
Book Value of Inventory = $625,648
Actual Value of Inventory = $636,000

Actual value of inventory is higher than the book value of inventory. So, there is an overage.

Overage = Actual Value of Inventory - Book Value of Inventory
Overage = $636,000 - $625,648
Overage = $10,352

Overage Percent = Overage / Net Sales
Overage Percent = $10,352 / $359,000
Overage Percent = 0.0288 or 2.88%

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Answer 2

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Net sales for the misses' sportswear department were $359,000. Physical inventory was taken and the amount...

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