Question

Vaughn Manufacturing sells one product and uses a perpetual inventory system. The beginning inventory consisted of 85 units that cost $22 per unit. During the current month, the company purchased 481 units at $19 each. Sales during the month totaled 362 units for $46 each. What is the number of units in the ending inventory?

Answer 1

Ending inventory in units= 204

Step-by-step explanation:

Giving the following information:

Beginning inventory= 85 units that cost $22 per unit.

Purchase= 481 units at $19 each.

Sales= 362 units for $46 each.

To calculate the ending inventory in units, we need to use the following formula:

Ending inventory in units= total number of units - units sold

Ending inventory in units= 566 - 362

Ending inventory in units= 204