Which of the following relationships is correct?
A)Beginning units in inventory + units started = units completed + ending units in inventory
B)Units started = beginning units in inventory + units completed + ending units in inventory
C)Units started − beginning units in inventory = units completed + ending units in inventory
D)Ending units in inventory + beginning units in inventory = units started − units completed

Question

Quizplus · Accepted Answer

The equation listed in choice A represents the basic accounting equation for inventory. It states that the number of units in inventory at the beginning, plus any units that were started during the period, should equal the number of units that were completed during the period plus the number of units that remain in inventory at the end of the period. This is a fundamental principle of inventory accounting and is used to ensure accurate tracking of inventory levels and values.

Which of the Following Relationships Is Correct