How does a company that uses a perpetual inventory system determine the amount of inventory shrinkage?

The following refers to units processed in Sunflower Printing’s binding department in March. Prepare a physical flow reconciliation. $$ \begin{matrix} & \text{Units of Product} & \text{Percent of Conversion Added}\\ \text{Beginning work in process}\ldots\ldots\ldots & \text{150,000} & \text{80\\%}\\ \text{Goods started}\ldots\ldots\ldots & \text{310,000} & \text{100}\\ \text{Goods completed}\ldots\ldots\ldots & \text{340,000} & \text{100}\\ \text{Ending work in process}\ldots\ldots\ldots & \text{120,000} & \text{25}\\ \end{matrix} $$

Prepare journal entries to record each of the following transactions. The company records purchases using the gross method and a perpetual inventory system.

Aug. 1 - Purchased merchandise with an invoice price of $60,000 and credit terms of 3/10, n/30.

11 - Paid supplier the amount owed from the August 1 purchase.

Define the cost of goods available for sale. How does it relate to cost of goods sold and ending inventory?

A department store decides to investigate whether there is a correlation between the number of pairs of gloves it sells and the outside temperature. Over a one-year period the store records, every two weeks, how many pairs of gloves are sold and the mean daytime temperature during the same period. The results are given in the table below.

$$\begin{matrix} \ {Mean \ temperature \ \left(^{\circ} \mathrm{C}\right)} & \text{3} & \text{6} & \text{8} & \text{10} & \text{10} & \text{11} & \text{12} & \text{14} & \text{16} & \text{16} & \text{17} & \text{18} & \text{18}\\ \text{Number of pairs of gloves} & \text{61} & \text{52} & \text{49} & \text{54} & \text{52} & \text{48} & \text{44} & \text{40} & \text{51} & \text{39} & \text{31} & \text{43} & \text{35}\\ \ {Mean \ temperature \ \left(^{\circ} \mathrm{C}\right)} & \text{19} & \text{19} & \text{20} & \text{21} & \text{22} & \text{22} & \text{24} & \text{25} & \text{25} & \text{26} & \text{26} & \text{27} & \text{28}\\ \text{Number of pairs of gloves} & \text{26} & \text{17} & \text{36} & \text{26} & \text{46} & \text{40} & \text{30} & \text{25} & \text{11} & \text{7} & \text{3} & \text{2} & \text{0}\\ \end{matrix}$$

a) Plot a scatter diagram of mean temperature against number of pairs of gloves. b) What type of correlation is there between the two variables? c) How might this information be useful for the department store in the future? d) The mean daytime temperature during the next twoweek period is predicted to be $20^{\circ} \mathrm{C} .$ Draw a line of best fit on your graph and use it to estimate the number of pairs of gloves the department store can expect to sell.

The manager of the commercial mortgage department of a large bank has collected data during the past two years concerning the number of commercial mortgages approved per week. The results from these two years ( 104 weeks) are as follows:

$$\begin{array}{cc} \begin{array}{c} \text { Number of Commercial } \\ \text { Mortgages Approved } \end{array} & \text { Frequency } \\ \hline 0 & 13 \\ 1 & 25 \\ 2 & 32 \\ 3 & 17 \\ 4 & 9 \\ 5 & 6 \\ 6 & 1 \\ 7 & 1 \end{array}$$

Calculate the standard deviation.

Identify whether each description best applies to a periodic or a perpetual inventory system.

______ d. Records cost of goods sold each time a sales transaction occurs.

What types of businesses are most likely to use a perpetual inventory system?

A feed supply company has developed a special feed supplement to see if it will promote weight gain in livestock. Their researchers report that the 77 cows studied gained an average of 56 pounds and that a $95 \%$ confidence interval for the mean weight gain this supplement delivers has a margin of error of $\pm 11$ pounds. Staff in their marketing department wrote the following conclusions. Did anyone analyze the interval correctly? Describe any misinterpretations.

e) If this supplement is tested on another sample of cows, there is a $95 \%$ chance that their average weight gain will be between 45 and 67 pounds.

Prepare journal entries to record each of the following transactions. The company records purchases using the gross method and a perpetual inventory system.

Sep. 15 - Purchased merchandise with an invoice price of $35,000 and credit terms of 2/5, n/15.

29 - Paid supplier the amount owed on the September 15 purchase.

Locust Company purchased merchandise on account from a supplier for $34,900, terms 1/10, n/30. Locust Company returned$6,400 of the merchandise and received full credit.

b. Under a perpetual inventory system, what account is credited by Locust Company to record the return?

A manufacturing company producing medical devices reported $60,000,000 in sales over the last year. At the end of the same year, the company had$20,000,000 worth of inventory of ready-to-ship devices. a. Assuming that units in inventory are valued (based on COGS) at $1,000 per unit and are sold for$2,000 per unit, how fast does the company turn its inventory? The company uses a 25 percent per year cost of inventory. That is, for the hypothetical case that one unit of $1,000 would sit exactly one year in inventory, the company charges its operations division a$250 inventory cost. b. What—in absolute terms—is the per unit inventory cost for a product that costs $1,000?

The Wheatland Company purchased merchandise on account from a supplier for $30,000, terms 1/10, n/30. The Wheatland Company returned$8,000 of the merchandise and received full credit.

a. What is the amount of cash required for the payment within the discount period?

b. Under a perpetual inventory system, what account is credited by The Wheatland Company to record the return?

Consider how rich the medium must be in each communication situation to convey the message most appropriately and reliably. Your choices can include an e-mail, a letter, a report, texting, instant messaging, a telephone call, a live chat, teleconferencing, a face-to-face conversation, or a team meeting. Describe the advantages and disadvantages of each choice.

Following a trade show visit, you are returning to company headquarters, where you must attend an important department meeting. It looks as though you will be at least 15 minutes late. What are your options?