Homer Company has a production schedule of 11,000 units and a budgeted sales volume of 10,000 units for the current year.In addition, 2,000 units are in beginning finished goods inventory._____ units are expected to be in ending finished goods inventory.
A)13,000
B)9,000
C)5,000
D)3,000

Question

Quizplus · Accepted Answer

To find the number of units expected to be in the ending finished goods inventory, we need to use the following formula:

Ending Finished Goods Inventory = Beginning Finished Goods Inventory + Production - Sales

Plugging in the given values, we get:

Ending Finished Goods Inventory = 2,000 + 11,000 - 10,000
Ending Finished Goods Inventory = 3,000

Therefore, the expected number of units in ending finished goods inventory is 3,000, which corresponds to choice D.

Homer Company Has a Production Schedule of 11,000 Units and a Budgeted