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 |