Find the number of units sold for May.
| | Beginning Inventory | Purchases | Units Sold |
| :----- | :------------------ | :-------- | :--------- |
| April | 7,500 | 2,000 | 3,000 |
| May | 6,500 | 5,000 | {$} |
| June | 4,000 | 1,000 | 2,000 |
Answer (2)
Define the relationship: B e g innin g I n v e n t or y J u n e = B e g innin g I n v e n t or y M a y + P u rc ha se s M a y − U ni t s S o l d M a y .
Substitute the given values: 4000 = 6500 + 5000 − U ni t s S o l d M a y .
Solve for U ni t s S o l d M a y : U ni t s S o l d M a y = 6500 + 5000 − 4000 .
Calculate the number of units sold: U ni t s S o l d M a y = 7500 . The number of units sold for May is 7500 .
Explanation
Analyzing the Problem Let's analyze the given inventory data to determine the number of units sold in May. We'll use the relationship between beginning inventory, purchases, and units sold to set up an equation and solve for the unknown.
Setting up the Equation We know that the beginning inventory for June is determined by the beginning inventory for May, the purchases made in May, and the units sold in May. We can express this relationship with the following equation:
B e g innin g I n v e n t or y J u n e = B e g innin g I n v e n t or y M a y + P u rc ha se s M a y − U ni t s S o l d M a y
Substituting the Values Now, let's substitute the values provided in the table:
4000 = 6500 + 5000 − U ni t s S o l d M a y
Solving for Units Sold To find the number of units sold in May, we need to solve for U ni t s S o l d M a y :
U ni t s S o l d M a y = 6500 + 5000 − 4000
U ni t s S o l d M a y = 11500 − 4000
U ni t s S o l d M a y = 7500
Final Answer Therefore, the number of units sold in May is 7500.
Examples
Understanding inventory management is crucial in many real-world scenarios. For example, a retail store needs to track its inventory to ensure it has enough products to meet customer demand without overstocking. By using the relationship: Ending Inventory = Beginning Inventory + Purchases - Sales, the store can determine how many items were sold during a specific period. This helps in making informed decisions about reordering, promotions, and overall business strategy. Similarly, manufacturers use inventory management to track raw materials, work-in-progress, and finished goods to optimize production and minimize costs. This concept is also applicable in personal finance, such as managing household supplies or tracking investments.
The number of units sold in May is 7500, calculated using the relationship between beginning inventory, purchases, and the ending inventory for June. By substituting the known values into the equation, we can isolate and find the number of units sold. This helps understand inventory management in a business context.
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