189k views
5 votes
The VP of operations requests that ending inventory of​ 1-gallon containers on December​ 31, 2018​, be 300 comma 000 units. If the production budget calls for Saphire to produce 1 comma 200 comma 000 ​1-gallon containers during 2018​, what is the beginning inventory of​ 1-gallon containers on January​ 1, 2018​?

1 Answer

6 votes

Answer:

Hi, the information you have provided is missing information regarding the Budgeted Sales of 1-gallon containers During the year.

However, the following points are provided to help solve the problem.

The Beginning inventory of 1-gallon containers on January​ 1, 2018​ can be determined using the missing figure approach.

Production Budget for the year end December​ 31, 2018

1-gallon containers

Budgeted Production 1,200,000

Less Budgeted Sales (amount missing) XXX

Less Budgeted Closing Stock (300,000)

Budgeted opening Stock XXX

User VkGunasekaran
by
8.4k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.