June Corp sells one product and uses a perpetual inventory s

June Corp. sells one product and uses a perpetual inventory system. The beginning inventory consisted of 40 units that cost $20 per unit. During the current month, the company purchased 240 units at $20 each. Sales during the month totaled 180 units for $43 each. What is the number of units in the ending inventory? 40 units 60 units 100 units 280 units

Solution

number of units in the ending inventory=Beginning  inventory +Purchases-Ending inventory

which is equal to

=(40+240-180)

which is equal to

=100 units.