Estimate the cost of shrinkage during the year

Reference no: EM132091283

Question: Inferring Shrinkage Using a Perpetual Inventory System JC Penney Company, Inc., is a major retailer with department stores in all 50 states. The main part of the company's business consists of providing merchandise and services to consumers through department stores. In 2006 JC Penney reported cost of goods sold of $11,405 million, ending inventory for the current year of $3,234 million, and ending inventory for the previous year (2005) of $3,167 million.

Required: If you knew that the cost of inventory purchases was $11,474 million, could you estimate the cost of shrinkage during the year? If so, prepare the estimate and, if not, explain why.

Reference no: EM132091283

Questions Cloud

Prepare journal entries to record sales discounts inventory : Journal Entries to Record Sales Discounts Inventory that cost $500 is sold for $700, with terms of 2/10, n/30. Give the journal entries to record.

How much will be allocated to the job : Actual manufacturing overhead for 2013 was $1,075,000. If Job #457 uses 300 machine hours, how much will be allocated to the job

Prepare a multistep income statement : Computing and Interpreting the Gross Profit Percentage Using the information in problem below, calculate the gross profit percentage for 2010.

How many units were started in june : Beginning work-in-process inventory is 30 percent complete as to conversion. How many units were started in June

Estimate the cost of shrinkage during the year : Inferring Shrinkage Using a Perpetual Inventory System JC Penney Company, Inc., is a major retailer with department stores in all 50 states.

What is the best estimate of total operating expenses : What is the best estimate of total operating expenses for 2014 using the high-low method based on total expected miles of 120,000

Prepare journal entries to record the transactions : Recording Journal Entries for Purchases, Purchase Discounts, and Purchase Returns Using a Perpetual Inventory System During the month of June.

How to develop a business idea : A business model canvass can be included as an appendix - learn how to develop a business idea, complemented by brainstorming and leveraging the insights

Prepare the journal entry using given data : Recording Petty Cash Transactions Sunshine Health established a $100 petty cash fund on January 1. From January 2 through 10, payments were made from the fund.

User Account

All Pages