Busted Company expects to produce 19,000 units.Beginning finished goods inventory is 2,000 units and expected sales are 18,000 units.Expected ending finished goods inventory is _____.
A)39,000
B)5,000
C)4,000
D)3,000

Question

Quizplus · Accepted Answer

To find the expected ending finished goods inventory, we need to use the following formula:

Expected ending finished goods inventory = Beginning finished goods inventory + Production - Sales

We are given that the company expects to produce 19,000 units and has a beginning finished goods inventory of 2,000 units. We are also given that expected sales are 18,000 units.

Plugging these values into the formula, we get:

Expected ending finished goods inventory = 2,000 + 19,000 - 18,000 
Expected ending finished goods inventory = 3,000

Therefore, the best choice is (D) 3,000.

Busted Company Expects to Produce 19,000 Units