Question
In: Finance
The ABC firm’s pro forma inventory balance at the end of October2021 is $5,000. In...
The ABC firm’s pro forma inventory balance at the end of October 2021 is $5,000. In November 2021, ABC anticipates having $6,000 in cost of goods sold while producing $5,000. In December 2021, ABC anticipates having $6,000 in cost of goods sold while producing $7,000. ABCs pro forma inventory balance at the end of December 2021 is:
| a. | $4,000 | |
| b. | $5,000 | |
| c. | $6,000 | |
| d. | $7,000 |
Solutions
Expert Solution
Closing Balance = OPening Balane + Produced - Cost of Goods sold
| Month | Opening Bal | Production | COGS | Closing Bal |
| Nov-21 | $ 5,000.00 | $ 5,000.00 | $ 6,000.00 | $ 4,000.00 |
| Dec-21 | $ 4,000.00 | $ 7,000.00 | $ 6,000.00 | $ 5,000.00 |
Closing balance after dec- 21 is $ 5000
jeff jeffy answered 2 years agoRelated Solutions
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