Shrinkage Losses At Year-End,the Perpetual Inventory Records of James Products Indicate 105

question 98

Essay

Shrinkage losses
At year-end,the perpetual inventory records of James Products indicate 105 units of a particular product in inventory,acquired at the following dates and unit costs: A complete physical inventory taken at year-end indicates only 93 units of this product actually are on hand.
Determine the dollar amount of the shrinkage loss assuming that James uses:

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Definitions:

Significant

Indicating a statistically meaningful relationship or difference in data, often determined by achieving a p-value below a predefined threshold.

Least Squares Regression

A statistical method used to determine the line of best fit by minimizing the sum of squares of the residuals.

Residual

The difference between an observed value and the predicted value in a statistical model.

Observed Value

The actual value measured or recorded during an experiment or observation.