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EB2.

LO 7.2How many units are in beginning inventory if 32,000 units are budgeted for sales, 35,000 units are produced, and the desired ending inventory is 9,000 units?

User MarkG
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1 Answer

4 votes

Answer:

6,000 units

Step-by-step explanation:

In order to maintain the desired ending inventory, the following relationship must be true.

Beginning inventory + produced units = budgeted units + desired ending inventory


Begining\ inventory + 35,000 = 32,0000 + 9,000\\Begining\ inventory = 6,000\ units

There are 6,000 units in the beginning inventory.

User Shriram Panchal
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