Samuelson will produce 20,000 units in January using level production. If each unit costs $500 to manufacture, what is the dollar value of ending inventory in January if beginning inventory is 10,000 units and January sales are 15,000?

Question

Amira Swanson

Business

11 November, 06:51

Samuelson will produce 20,000 units in January using level production. If each unit costs $500 to manufacture, what is the dollar value of ending inventory in January if beginning inventory is 10,000 units and January sales are 15,000?

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Answers (1)

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Colten Torres · Answer 1

The dollar value of ending inventory is $7.500.000

Explanation:

To calculate the dollar value of ending inventory you need to use the next formula:

End inventory = (Beginning inventory + production - sales).$

In this case:

- Beginning inventory: 10.000 units

- January Production: 20.000 units

- Sales: 15.000 units

End inventory = 10000+20000-15000

End inventory = 15.000 units

Dollar value = 150000. $500 = $7.500.000