The Ending Inventories budget

The ending inventory for one period becomes the beginning inventory for another period. Considering the fact that as a business you will not like to start each period with zero inventory, a projection will need to be made to be made with how much inventory should remain at the end of each period. Once the units of inventory has been determined, it is multiplies by the unit costs to determine the cost involved in maintaining this inventory at the end of the period.

Next: Preparing the  Cost of Goods Sold Budget


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