Charter Company is preparing their budget for the 1^st quarter of 2012. The following data is provided: For the budgeted balance sheet at March 31, what amount should be shown for Inventory?

Question

Quizplus · Accepted Answer

To calculate the amount of inventory for the budgeted balance sheet, we need to use the formula: Beginning Inventory + Purchases - Cost of Goods Sold = Ending Inventory. 
From the provided data, we know that: 
- Beginning Inventory for January is $7,000 
- Purchases for the first quarter (Jan-Feb-Mar) are $28,500 
- Cost of Goods Sold for the first quarter (Jan-Feb-Mar) is $25,700 
Using the formula: 
Beginning Inventory + Purchases - Cost of Goods Sold = Ending Inventory 
$7,000 + $28,500 - $25,700 = $9,800 
Therefore, the amount that should be shown for Inventory in the budgeted balance sheet at March 31 is $9,800, which is option D.

Charter Company Is Preparing Their Budget for the 1st Quarter

Charter Company Is Preparing Their Budget for the 1^st Quarter