Concerning relationship between beginning finished goods inventory, ending finished goods inventory, production, and sales, which of the following is true?

Question

Quizplus · Accepted Answer

Production needs to account for the sales made during the period and ensure the ending inventory is at the desired level, starting from the beginning inventory. Therefore, to find the production amount, you add the sales to the ending inventory to cover both sold and unsold goods and then subtract the beginning inventory to account for what was already in stock at the start of the period.

Concerning Relationship Between Beginning Finished Goods Inventory, Ending Finished Goods