the president of national wholesalers suspects that employees are stealing several items of merchandise/
Required:
1. Compute the number of units of each type of merchandise that are unaccounted for on May 1. The company uses a periodic inventory system and the weighted- average inventory costing method.
2. Determine the monetary value of the apparent loss.
3. Assuming that the apparent loss realized during the period January 1 April 30 is representative of the loss that might be realized on these two items during an entire year, would you recommend that (a) a new inventory system be installed in the warehouse at an annual cost of $ 4,000 to maintain perpetual inventory records of these two items of merchandise and (b) a quarterly physical inventory count of these items be implemented at an additional cost of $ 1,000 per quarterly count? Show supporting computations.

