Find the beginning inventory for May.
| | Beginning Inventory | Purchases | Units Sold |
| :----- | :------------------ | :-------- | :--------- |
| April | 6,300 | 800 | 2,400 |
| May | {[?]} | 1,000 | 2,800 |
| June | 2,900 | 3,100 | 2,200 |
Ending Inventory = Beginning Inventory + Purchases - Units Sold
Answer (2)
Calculate the ending inventory for April: 6300 + 800 − 2400 = 4700 .
Recognize that the ending inventory for April is the beginning inventory for May.
Therefore, the beginning inventory for May is 4700.
Verify the answer using May's data: 4700 + 1000 − 2800 = 2900 , which matches June's beginning inventory. The beginning inventory for May is 4700 .
Explanation
Understanding the Problem We are given a table with inventory information for April, May, and June. We need to find the beginning inventory for May. We know the beginning inventory for April, the purchases for April, and the units sold for April. We also know that the ending inventory for April is the beginning inventory for May. The formula for ending inventory is: Ending Inventory = Beginning Inventory + Purchases - Units Sold.
Calculating Ending Inventory for April First, we need to calculate the ending inventory for April. We are given: Beginning Inventory (April) = 6,300 units Purchases (April) = 800 units Units Sold (April) = 2,400 units Using the formula, we have: Ending Inventory (April) = 6300 + 800 - 2400
Performing the Calculation Now, let's calculate the ending inventory for April: Ending Inventory (April) = 6300 + 800 - 2400 = 4700 units
Finding Beginning Inventory for May Since the ending inventory for April is the beginning inventory for May, we have: Beginning Inventory (May) = Ending Inventory (April) = 4700 units
Verification To verify our answer, we can use the information for May and June. We know: Purchases (May) = 1,000 units Units Sold (May) = 2,800 units Beginning Inventory (June) = 2,900 units We can calculate the ending inventory for May using the formula: Ending Inventory (May) = Beginning Inventory (May) + Purchases (May) - Units Sold (May) Ending Inventory (May) = 4700 + 1000 - 2800 = 2900 units This matches the beginning inventory for June, so our answer is correct.
Final Answer Therefore, the beginning inventory for May is 4,700 units.
Examples
Inventory management is crucial for businesses to track stock levels and ensure they can meet customer demand without overstocking. For example, a retail store uses inventory calculations to determine how much product to order each month. By analyzing beginning inventory, purchases, and sales, the store can optimize its stock levels, reduce storage costs, and improve profitability. This problem demonstrates a simplified version of these calculations, helping students understand the basic principles of inventory control.
The beginning inventory for May is 4,700 units, derived from the ending inventory of April, which was calculated to be the same. This was verified with May's purchase and sales figures. All calculations are consistent and correct.
;
