Question

Ida Sidha Karya Company is a family-owned company located in the village of Gianyar on the island of Bali in Indonesia. The company produces a handcrafted Balinese musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $850. Selected data for the company’s operations last year follow: Units in beginning inventory 0 Units produced 250 Units sold 225 Units in ending inventory

Answer 1

Units in ending inventory is 25

Step-by-step explanation:

The units in ending inventory can be computed using the cost of goods sold formula and rearranging it to make ending inventory the subject of the formula.

Cost of goods sold=beginning inventory+units produced-ending inventory

ending inventory=beginning inventory+units produced-Cost of goods sold

beginning inventory is 0

units produced is 250 units

unit sold is 225 units

ending inventory=0+250-225

ending inventory=25 units