Student Doubts Forum

midterm fall 2122 - ex 3.2

Re: midterm fall 2122 - ex 3.2

by Pedro Pinto da Silva Perdigão -
Number of replies: 0
Hello Mariana,

The change in WIP Inventories is correct, 7 600€ (8 600€ - 1000 €)
However, the change in Finished Goods is not 100 €. If you look at the table, it says 100 units and not 100€. Therefore, using the COGM/unit that you had found out in 3.1 (10€), you can find that these 100 units in closing inventories are worth 1 000€

Therefore, change in inventories is 7 600€ (change in WIP) + 1 000€ (change in FG)

Good study!