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Burisma Corp uses a perpetual inventory system. They take a physical count of its inventory at the end of each month. For the month of June of the current year, the accounting records provided the following information for one of its products: Book Value Units Unit Cost of Inventory $ 58,800 $ 6.00 $10.00 $19.00 Beginning inventory 9,800 Purchase, June 5 14,000 140,000 Purchase, June 18 14,000 266,000 Sale, June 25 ($30 per unit) (22,400) Ending inventory (before physical count) 15,400 The company uses FIFO inventory to account for its inventory. On June 30, Burisma counted its inventory and found that it only had 13,100 units on hand. What is the cost of the inventory shrinkage that the Burisma will charge to COGS for the month of June?

Burisma Corp uses a perpetual inventory system. They take a physical count of its inventory at the end of each month. For the month of June of the current year, the accounting records provided the following information for one of its products: Book Value Units Unit Cost of Inventory $ 58,800 $ 6.00 $10.00 $19.00 Beginning inventory 9,800 Purchase, June 5 14,000 140,000 Purchase, June 18 14,000 266,000 Sale, June 25 ($30 per unit) (22,400) Ending inventory (before physical count) 15,400 The company uses FIFO inventory to account for its inventory. On June 30, Burisma counted its inventory and found that it only had 13,100 units on hand. What is the cost of the inventory shrinkage that the Burisma will charge to COGS for the month of June?

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 10RE: Jessie Stores uses the periodic system of calculating inventory. The following information is...
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Burisma Corp uses a perpetual inventory system. They take a physical count of its inventory at the end of each month. For the month of June of the current year, the accounting records provided the following information for one of its products: Book Value Units Unit Cost of Inventory $ 58,800 $ 6.00 $10.00 $19.00 Beginning inventory 9,800 Purchase, June 5 14,000 140,000 14,0 (22,400) Purchase, June 18 00 Sale, June 25 ($30 per unit) Ending inventory (before physical count) 15,400 The company uses FIFO inventory to account for its inventory. On June 30, Burisma counted its inventory and found that it only had 13,100 units on hand. What is the cost of the inventory shrinkage that the Burisma will charge to COGS for the month of June?
Transcribed Image Text:Burisma Corp uses a perpetual inventory system. They take a physical count of its inventory at the end of each month. For the month of June of the current year, the accounting records provided the following information for one of its products: Book Value Units Unit Cost of Inventory $ 58,800 $ 6.00 $10.00 $19.00 Beginning inventory 9,800 Purchase, June 5 14,000 140,000 14,0 (22,400) Purchase, June 18 00 Sale, June 25 ($30 per unit) Ending inventory (before physical count) 15,400 The company uses FIFO inventory to account for its inventory. On June 30, Burisma counted its inventory and found that it only had 13,100 units on hand. What is the cost of the inventory shrinkage that the Burisma will charge to COGS for the month of June?
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