Ann Taylor’s shoe department recorded the following inventory activity in May 2019

	Retail	Cost
Employee & customer discounts	$11,300
Purchases	$950,000	420,000
Freight		$7,000
Gross sales	$1,340,000
Returns to vendors	$13,000	7,000
Customer returns	$19,000
Physical inventory, May 1	$2,360,000	1,240,000
Physical inventory, May 31	$1,570,000	930,000

1) What was the department’s book inventory at retail of May 31?

2) What was the cumulative markup percentage?

3) What was the department’s ending book inventory at cost in May 2019?

4) Was there a stock shortage or overage in May 2019?

5) What was the stock shortage/overage% in May 2019?

6) What might be the primary reason for this shortage/overage?

Answer rating: 100% (QA)

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