To find the ending inventory for each month based on the given data, we need to systematically apply the given formula:
[tex]\[ \text{Ending Inventory} = \text{Beginning Inventory} + \text{Purchases} - \text{Units Sold} \][/tex]
Let's start with the month of April:
### April:
1. Beginning Inventory (April): The problem does not provide a value for the beginning inventory of April, so we start with 0.
- [tex]\(\text{Beginning Inventory} = 0\)[/tex]
2. Purchases (April): 1,800 units.
3. Units Sold (April): 3,100 units.
Applying the formula to calculate the ending inventory for April:
[tex]\[ \text{Ending Inventory (April)} = 0 + 1,800 - 3,100 \][/tex]
[tex]\[ \text{Ending Inventory (April)} = -1,300 \][/tex]
The ending inventory for April is [tex]\(-1,300\)[/tex] units. This negative inventory indicates that there are more units sold than available in inventory, resulting in a deficit.
### May:
The ending inventory for April becomes the beginning inventory for May. Thus, the beginning inventory for May is [tex]\(-1,300\)[/tex] units.
1. Beginning Inventory (May): [tex]\(-1,300\)[/tex] units (carried over from April).
- [tex]\(\text{Beginning Inventory} = -1,300\)[/tex]
2. Purchases (May): 3,100 units.
3. Units Sold (May): 2,600 units.
Applying the formula to calculate the ending inventory for May:
[tex]\[ \text{Ending Inventory (May)} = -1,300 + 3,100 - 2,600 \][/tex]
[tex]\[ \text{Ending Inventory (May)} = -1,300 + 500 \][/tex]
[tex]\[ \text{Ending Inventory (May)} = 7500 \][/tex]
Hence, the ending inventory for May is 7,500 units.
Summarizing the results:
- Ending Inventory for April: [tex]\(-1,300\)[/tex] units.
- Ending Inventory for May: 7,500 units.
