6-2 Problem Set: Shortage And Overage

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
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 %?
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

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