Principles of Accounting Volume 2
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ISBN: 9781947172609
Author: OpenStax
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FOLLOW General Account Requirements
Transcribed Image Text:Expected sales for the first two months of 2014 for the Harvard
Corporation are as follow:
January sales
180,000 units
February sales
1,175,000 units
The inventory at the beginning of January was 38,000 units. The
required ending inventory is 25% of the following month's sales.
What is the required ending inventory for January?
a. 38,000 units
b. 45,000 units
c. 43,750 units
d. 60,000 units
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