Question

A company currently has 500 items in inventory. The demand for the next 2 months is 900 and 1200 units. Assuming a level production rate of 1000 units per month, determine the ending inventory at the end of the second month.

Answer 1

The ending inventory at the end of the second period is 400 units

What is ending inventory?

Ending inventory means the quantity of stock left unsold at the end of a period.

It is determined as beginning inventory plus production units minus quantity sold or demanded.

Ending inventory first month=500+1000-900

Ending inventory first month=600

Ending inventory second month=600+1000-1200

Ending inventory second month=400

Find in the link below further explanation on ending inventory.

https://brainly.com/question/14970629

#SPJ1