Shortage and Overage

SHORTAGE AND OVERAGE

1. Calculate the shortage % for the jewelry department if shortage $ are $482 and net sales for the year are $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?

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 Purchases

Totals

Opening Book Inventory $1,404,000 + Additions

-Reductions =Closing book inventory

Closing book inventory $0

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Overage $ $0

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 $

$1,135,000

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 Purchases

Total

Opening Book Inventory $2,861,000 + Additions $230,000

-Reductions $0 =Closing book inventory

b. Closing book inventory $0

c. Shortage $ $0

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Module Six: SHORTAGE AND OVERAGE

Shortage $ Net Sales $ $482 $6,550

Closing book inventory Physical inventory $2,260,000 $1,975,000

Shortage $ Net sales $ $0 $6,850,000

Retail $ Reductions Retail $ $495,000 Net sales $442,000

Returns to vendors $4,000 Markdowns $146,000 Employee Disc. $1,000 Transfers To $8,000

Physical inventory Shortage/Overage $ $1,287,000

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Net sales $ Overage % $2,875,000

Planned shortage % Planned shortage $ 1.7%

Retail $ Reductions Retail $ $230,000 Net sales $423,000

Markdowns $140,000 $230,000

Physical inventory Shortage/Overage $ $2,400,000

Net sales $ Shortage % $5,600,000

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Shortage %

Shortage/Overage $ Shortage or Overage list below

Shortage %

Shortage or Overage list below

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Shortage or Overage list below

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Correct formula and answer

One or more formula errors Wrong formula or no formula

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