working on a class project
Problems
| SHORTAGE AND OVERAGE | Module 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 inventory | Physical inventory | Shortage/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 |
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| Additions | Retail $ | Reductions | Retail $ | ||||||||||||||||||||
| Purchases | $495,000 | Net 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 inventory | Physical inventory | Shortage/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 $ | ||||||||||||||||||||
| $1,135,000 | 1.7% | ||||||||||||||||||||||
| 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 %? |
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| a. | Additions | Retail $ | Reductions | Retail $ | |||||||||||||||||||
| Purchases | $230,000 | Net 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 inventory | Physical inventory | Shortage/Overage $ | Shortage or Overage list below | |||||||||||||||||||
| $0 | $2,400,000 | ||||||||||||||||||||||
| c. | Shortage $ | Net sales $ | Shortage % | ||||||||||||||||||||
| $0 | $5,600,000 |
