Question
The companys policy is to maintain a finished goods inventory equal to (50%) of the following months sales. Sales of 14,000 units are budgeted for
The companys policy is to maintain a finished goods inventory equal to (50%) of the following months sales. Sales of 14,000 units are budgeted for April.
Statements
January
February
March
Sales in units
10,000
8,000
12,000
Add: units of ending inventory
4,000
?
?
Desired total units
14,000
Less: desired units of beginning inventory
?
?
?
Total production units
9,000
?
?
Instructions: (2 marks each)
Find the following items (show your calculations)
1. The units of ending inventory in February.
2. The units of ending inventory in March.
3. The units of beginning inventory in January.
4. The units of beginning inventory in February.
5. The units of beginning inventory in March.
6. The total production units in February.
7. The total production units in March.
The companys policy is to maintain a finished goods inventory equal to (50%) of the following months sales. Sales of 14,000 units are budgeted for April.
Statements
January
February
March
Sales in units
10,000
8,000
12,000
Add: units of ending inventory
4,000
?
?
Desired total units
14,000
Less: desired units of beginning inventory
?
?
?
Total production units
9,000
?
?
Instructions: (2 marks each)
Find the following items (show your calculations)
1. The units of ending inventory in February.
2. The units of ending inventory in March.
3. The units of beginning inventory in January.
4. The units of beginning inventory in February.
5. The units of beginning inventory in March.
6. The total production units in February.
7. The total production units in March.
The companys policy is to maintain a finished goods inventory equal to (50%) of the following months sales. Sales of 14,000 units are budgeted for April.
Statements | January | February | March |
Sales in units | 10,000 | 8,000 | 12,000 |
Add: units of ending inventory | 4,000 | ? | ? |
Desired total units | 14,000 | ||
Less: desired units of beginning inventory | ? | ? | ? |
Total production units | 9,000 | ? | ? |
Instructions: (2 marks each)
Find the following items (show your calculations)
1. The units of ending inventory in February.
2. The units of ending inventory in March.
3. The units of beginning inventory in January.
4. The units of beginning inventory in February.
5. The units of beginning inventory in March.
6. The total production units in February.
7. The total production units in March.
The companys policy is to maintain a finished goods inventory equal to (50%) of the following months sales. Sales of 14,000 units are budgeted for April.
Statements | January | February | March |
Sales in units | 10,000 | 8,000 | 12,000 |
Add: units of ending inventory | 4,000 | ? | ? |
Desired total units | 14,000 | ||
Less: desired units of beginning inventory | ? | ? | ? |
Total production units | 9,000 | ? | ? |
Instructions: (2 marks each)
Find the following items (show your calculations)
1. The units of ending inventory in February.
2. The units of ending inventory in March.
3. The units of beginning inventory in January.
4. The units of beginning inventory in February.
5. The units of beginning inventory in March.
6. The total production units in February.
7. The total production units in March.
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Accounting Principles Volume 2 Chapters 13 To 26
Authors: Jerry J. Weygandt
11th Edition
1118342070, 978-1118342077
