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Sagot :
The company intends to produce 389,000 units in February.
What is finished goods inventory?
The products sold to the client are classified as finished goods inventory in the third and final classification of inventory used for accounting purposes by manufacturing organizations. Manufactured goods begin as raw materials and proceed to the work-in-process (WIP) stage when they are manufactured.
Finished products are items that have gone through the necessary production processes and are ready to be fitted/mixed/processed with the final product. The completed product might also be referred to as the finished product. Automobiles, clothing, food, and furnishings are among the examples.
Giving the following information:
January (in units) = 440,000
February (in units) = 390,000
March (in units) = 380,000
Expected sales (in units) desired to end finished goods inventory
=(in units) 39,000 38,000 40,000.
February:
Sales= 390,000
Ending inventory= 38,000
Beginning inventory= (39,000)
Total= 389,000 units
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