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26 May, 02:30

EA2.

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?

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  1. 26 May, 05:05
    0
    6,000 units

    Explanation:

    The beginning inventory units are calculated below

    We know

    Number of units produced = Budgeted units sold + ending inventory units - beginning inventory units

    35,000 units = 32,000 units + 9,000 units - beginning inventory units

    35,000 units = 41,000 units - beginning inventory units

    So, the beginning inventory units would be

    = 41,000 units - 35,000 units

    = 6,000 units
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