The basic inventory formula is Beginning Inventory + Amount Purchased/Produced ? Amount Sold/Used = Ending Inventory We know beginning inventory, ending inventory and amount used, so we can calculate the amount purchased. Letting P stand for Amount Purchased: 25,000 + P ? 90,000 = 20,000 Solving for P, we get P = 85,000.
This is the sum of the beginning inventory, the amount used, and the ending inventory. The basic inventory formula is Beginning Inventory + Amount Purchased/Produced ? Amount Sold/Used = Ending Inventory.
This answer results from reversing the beginning and ending inventory amounts in the calculation of the amount purchased. The basic inventory formula is Beginning Inventory + Amount Purchased/Produced ? Amount Sold/Used = Ending Inventory.
90,000 is the amount that Swan expects to use for current sales. It does not include the change in inventory from the beginning of the period to the end of the period. The basic inventory formula is Beginning Inventory + Amount Purchased/Produced ? Amount Sold/Used = Ending Inventory.
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