Problem 2: Cost flow model. Mark Landman\'s accountant resigned and left the boo

Question

Problem 2: Cost flow model. Mark Landman's accountant resigned and left the books in a mess. Mark is trying to compute unknown values in inventory accounts in three of his stores. Knowing of your expertise in cost flows, he asks for your help and provides you with the following information about each store: Store Midwest Northeast Southeast Beginning inventory.. Transfers into inventory accounts Transfers out of inventory accounts.. Ending inventory... $200,000 180,000 60,000 60,000 200,000 220,000 $160,000 150,000 40,000

Explanation / Answer

Beginning Inventory+Transfers into inventory accounts-Transfers out of inventory accounts=Ending Inventory

Hence,
for Midwest
Beginning Inventory+200000-180000=60000
=>Beginning Inventory=40000

for Northeast
60000+200000-220000=Ending Inventory
=>Ending Inventory=40000

for Southeast
Beginning Inventory+160000-150000=40000
=>Beginning Inventory=30000

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