Question

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​?

Answer 1

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