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18 October, 05:05

The Sam Company manufactures tools. In 2018, they manufactured 21,000 tools but sold 20,000 tools. In 2018, their change in inventory was:

Select one:

A. 1000 tools

B. - 1000 tools

C. - 3000 tools

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Answers (1)
  1. 18 October, 08:13
    0
    A. 1000 tools

    Explanation:

    Sam Company manufactured 21,000 machines.

    Sam Company sold 20,000 tools.

    The changes in inventory = Manufactured items - Sold items

    The changes in inventory = 21,000 tools - 20,000 tools.

    The changes in inventory = 1,000 tools.

    Since there are no beginning inventories, we cannot add it with the manufactured items. Therefore, we just deducted the sales volume from production.
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