Dunedin Inc

question 100

Essay

Dunedin Inc.began the month with inventory of $10,000 and then purchased inventory at a cost of $105,000.The perpetual inventory system indicates that inventory costing $94,000 was sold during the month for $141,000.An inventory count shows that inventory costing $20,100 is actually on hand at month-end.
Required:
What amount of shrinkage occurred during the month?

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Definitions:

Market Value

The current price at which an asset or service can be bought or sold, often used in the context of stocks, real estate, and other investments.

Share Capital

The amount of money raised by a company through the issuance of shares to its shareholders.

Corporate Form

A legal structure for organizing a business as a separate entity, recognized by law as having its own rights and liabilities.

Government Regulation

Rules established by authorities designed to control and direct the actions of individuals and organizations within a society.