Ending inventory at the end of each period is given by ______.
A)Ending inventory = Beginning inventory of each period + Production in that period
B)Ending inventory = Beginning inventory of each period + Production in that period - Forecasted demand in that period
C)Ending inventory = Beginning inventory of each period - Production in that period
D)Ending inventory = Beginning inventory of each period - Production in that period + Forecasted demand in that period

Question

Quizplus · Accepted Answer

Ending inventory is calculated by adding the beginning inventory and production for the period, then subtracting the forecasted demand for that period. This accounts for the goods that were available at the start, produced, and then reduced by what was expected to be sold.

Ending Inventory at the End of Each Period Is Given