Using the data: Beginning inventory of 10,000; storeroom purchases for the month of 15,500; total issues for the month of 8,750. What is the ending inventory for the month?

Using the data: Beginning inventory of 10,000; storeroom purchases for the month of 15,500; total issues for the month of 8,750. What is the ending inventory for the month?

• A. 16,750
• B. 7,750
• C. 23,000
• D. 10,000

Answer: (A)

Inventory flow during the period is tracked by starting with the amount on hand, adding what you purchase, and subtracting what is issued or withdrawn. Beginning inventory plus purchases increases the stock, while total issues reduce it. So you compute ending inventory as: 10,000 + 15,500 - 8,750 = 16,750. This means the ending inventory is 16,750, which matches the listed option. The other numbers would result from not accounting for all parts of the flow (missing the purchases, or misapplying the subtraction), which is why they don’t fit.

Inventory flow during the period is tracked by starting with the amount on hand, adding what you purchase, and subtracting what is issued or withdrawn. Beginning inventory plus purchases increases the stock, while total issues reduce it. So you compute ending inventory as: 10,000 + 15,500 - 8,750 = 16,750. This means the ending inventory is 16,750, which matches the listed option. The other numbers would result from not accounting for all parts of the flow (missing the purchases, or misapplying the subtraction), which is why they don’t fit.