A Firm Has 56 Units of Product X on Hand

question 29

Multiple Choice

A firm has 56 units of product X on hand. Forecasts of demand are for 20 units per week. An MPS quantity of 100 units is planned to arrive in period 3. Customer orders are 24 for period 1, 18 for period 2, and 15 for period 3.
What is the projected on-hand inventory at the end of period 2?

• A)14
• B)32
• C)12
• D)20
• E)impossible to say without more information

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Definitions:

Single-Entry System

A rudimentary accounting method where entries are made in a single record, typically focusing only on cash flow and personal accounts.

Computerized Ledger System

A digital system for recording the financial transactions of a business or organization, providing an organized way to store, manage, and report financial data.

Business Transaction

An economic event or condition that changes an entity's financial statements, involving the exchange of goods, services, or funds.

Accounting Records

Documents and books that keep track of all financial transactions of a business or individual.