What is the projected on hand inventory at the end of period 2?
A)14
B)32
C)12
D)20
E)impossible to say without additional information

Question

Quizplus · Accepted Answer

Using the given inventory equation, we can calculate the inventory at the end of period 1: 
Beginning inventory + Purchases - Cost of goods sold = Ending inventory 
20 + 10 - 18 = 12 
We can now use this ending inventory as the beginning inventory for period 2: 
Beginning inventory + Purchases - Cost of goods sold = Ending inventory 
12 + 18 - 16 = 14 
Therefore, the projected on hand inventory at the end of period 2 is 14.

What Is the Projected on Hand Inventory at the End