| 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 |