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What is the Beginning Inventory for next week?

A. \[tex]$12,500 - the revenue is the beginning inventory
B. \$[/tex]11,500 - beginning inventory is always the same
C. \[tex]$3,500 - this week's purchases are next week's beginning inventory
D. \$[/tex]10,900 - this week's ending inventory is next week's beginning inventory


Sagot :

To determine the beginning inventory for the next week, we need to follow the logic of inventory management. The ending inventory of the current week becomes the beginning inventory of the next week. This way, we can easily track how much resources we start with at the beginning of each new week.

From the given data, we observe the following:
- Beginning Inventory (current week): [tex]$\$[/tex] 11,500[tex]$ - Ending Inventory (current week): $[/tex]\[tex]$ 4,100$[/tex]

Based on the principle that the ending inventory of the current week becomes the beginning inventory of the next week, the beginning inventory for the next week is the current week's ending inventory.

Therefore, the beginning inventory for next week is:

[tex]$\$[/tex] 4,100[tex]$ From the given answer choices: a. \$[/tex] 12,500 - Incorrect. This is the revenue, not related to the beginning inventory for the next week.
b. \[tex]$ 11,500 - Incorrect. Although this is the beginning inventory for the current week, it does not account for the changes that have occurred over the week. c. \$[/tex] 3,500 - Incorrect. This week's purchases are not the beginning inventory for the next week.
d. \[tex]$ 4,100 - Correct. The ending inventory of this week is the beginning inventory for the next week. Thus, the correct answer is: d. \$[/tex] 4,100 - this week's ending inventory is next week's beginning inventory