Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

How do I find the beginning inventory for an individual product when the ending inventory of finished goods for the previous period consists of three

How do I find the beginning inventory for an individual product when the ending inventory of finished goods for the previous period consists of three products? Or am I doing this wrong?

(Reference below. Inventory - Finished Goods consists of the sum of three different products including the individual product which I must find the beginning inventory)

image text in transcribed

(The production budget below is the table for ITEM 1. The value I'm trying to solve is the July beginning inventory amount)

image text in transcribed

ITEM 2

image text in transcribedITEM 3

image text in transcribed

Target inventories are consistent for all 3 items (50% of next months sales in units).

Cost for each item:

ITEM 1 $ 279.99
ITEM 2 $ 59.99
ITEM 3 $ 39.99
Balance Sheet as at 31 June, 2022 Assets Cash Accounts receivable Inventory - Direct Materials Inventory Inventory - Finished Goods Land Property, Plant & Equipment Less Accumulated Depreciation Total Assets Liabilities and Stockholders' equity Accounts payable Bank Loan Share Capital Retained earnings Total Liabilities and Stockholders' equity $ 45,015 $ 113,650 54,275 79,150 $ 750,000 $ 160,000 -$ 8,000 $ 1,194,090 $ 42,500 $ 525,000 $ 102,765 $ 523,825 $ 1,194,090 Production Budget July August September October November December January February March April May June TOTAL July February 80 80 80 80 80 80 400 400 400 400 400 400 2880 400 400 Budgeted sales volume (units) Target Ending Inventory - 50% of next month's sales (units) Total Finished Goods Required Less Beginning Inventory 40 40 0 40 120 40 120 40 120 40 120 40 40 120 40 200 280 40 200 600 200 200 600 200 200 600 200 200 600 200 200 600 200 200 600 200 200 3,080 200 200 600 200 400 200 Budgeted sales volume (units) 1600 1100 1160 1000 600 600 500 400 400 400 1160 1100 1100 1200 11320 1400 1400 Budgeted sales volume (units) 1000 1000 1200 1200 1200 1300 1300 1400 1400 1400 1400 1400 15200 1400 1400

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

11th Edition

0471448966, 978-0471448969

More Books

Students also viewed these Accounting questions

Question

Determine Leading or Lagging Power Factor in Python.

Answered: 1 week ago