Jones Company uses widgets as component parts. In a particular week it has gross requirements for 250 units of widgets, beginning inventory of 50 widgets, and scheduled receipts of 350 widgets. Available inventory for the next period is:
A)650.
B)50.
C)250.
D)150.

Question

Quizplus · Accepted Answer

To calculate the available inventory for the next period, we need to use the following formula:

Available inventory = Beginning inventory + Scheduled receipts - Gross requirements

In this case, we have:

Available inventory = 50 + 350 - 250
Available inventory = 150

Therefore, the correct answer is D, with an available inventory of 150 widgets.

Jones Company Uses Widgets as Component Parts