An examination of Shorter Corporation's inventory accounts revealed the following information:
Raw materials,June 1: 46,000 units
Raw materials,June 30: 51,000 units
Purchases of raw materials during June: 185,000 units
Shorter's finished product requires four units of raw materials.On the basis of this information,how many finished products were manufactured during June?

Question

Quizplus · Accepted Answer

Each finished product requires four units of raw materials. The increase in raw materials inventory (51,000 - 46,000 = 5,000 units) represents the raw materials used in production. Dividing this amount by four (5,000 / 4 = 1,250 units) gives the number of finished products manufactured during June.

An Examination of Shorter Corporation's Inventory Accounts Revealed the Following