Question

nformation for firm ABC: Inventory at the end of April, 2008: 200 units Expected demand during April, 2008: 50 units Production expected during April, 2008: 100 units What was the inventory at the end of March 2008

Answer 1

Inventory at the end of march 2008 = 150 units

Step-by-step explanation:

The closing inventory at the end of a particular period will be opening inventory at the beginning of the following period.

Note that the inventory at the end of March 2008 will be the opening inventory at the beginning of April 2008.

The production budgeted for a particular period is the expected units to be produced after adjusting the sales budget figures for opening and closing inventories.

Production = Sales volume + closing inventory - opening inventory

100 = 50 + 200 - X

X = 50 + 200 -100

X = 150 units

Inventory at the end of march 2008 = 150 units