Mangerial

Chapter 6 Fin Acct

Corey's Campus Store has $59,800 of inventory on hand at the beginning of the month. During the month, the company buys $8,300 of merchandise and sells merchandise that had cost $38,900. At the end of the month, $19,200 of inventory is on hand. |

Required: |

How much shrinkage occurred during the month? (Omit the "$" sign in your response.) |

Shrinkage | $ |

Explanation:

| | |

Beginning inventory | $ | 59,800 |

Purchases | | 8,300 |

Cost of goods sold | – | 38,900 |

| | |

Ending balance | | 29,200 |

Inventory count | – | 19,200 |

| | |

Shrinkage | $ | 10,000 |

Identify the type of business as service (S), retail merchandiser (RM), wholesale merchandiser (WM), or manufacturer (M) for each of the following. |

| | |

1. | The company reports no inventory on its balance sheet. | S |

2. | The company is a true “middleman,”buying from a

manufacturer and selling to other companies. | WM |

3. | The company’s inventory includes raw materials that will

be processed into ready-to-use goods. | M |

4. | The company sells goods to consumers. | RM |

|

1. The business manager has the only key to the check-signing

equipment. |

Restrict access |

2. The purchasing manager orders all goods and services for the

business. | Establish responsibility |

3. A bank reconciliation is prepared monthly. | Independently verify |

4. Prenumbered checks are used for all payments. | Document procedures |

5. The company asks suppliers to deliver their merchandise to the

warehouse but mail their invoices to the accounting department. | Segregate duties |

BANK STATEMENT |

| Checks | Deposits | Other | Balance |

Balance, September 1, 2011 | | | | | | | | $ | 2,000 |

September 7 | | | | | NSF check | $ | 100 | | 1,900 |

September 11 | | | | $ 3,000 | | | | | 4,900 |

September 12 | #101 | $ | 800 | | | | | | 4,100 |

September 17 | #102 |...