An inventory record begins with 120 units on hand. During the period, 42 units are sold and 15 units are received. What is the ending on-hand quantity?

An inventory record begins with 120 units on hand. During the period, 42 units are sold and 15 units are received. What is the ending on-hand quantity?

• A. 103
• B. 93
• C. 113
• D. 83

Answer: (B)

Tracking inventory over a period uses this flow: start with what you have on hand, subtract the amount sold, and add the amount received. Here, you begin with 120 units. Selling reduces on hand by 42 → 120 − 42 = 78. Receiving increases it by 15 → 78 + 15 = 93. Equivalently, 120 + 15 − 42 also gives 93. The ending on-hand quantity is 93.

Tracking inventory over a period uses this flow: start with what you have on hand, subtract the amount sold, and add the amount received. Here, you begin with 120 units. Selling reduces on hand by 42 → 120 − 42 = 78. Receiving increases it by 15 → 78 + 15 = 93. Equivalently, 120 + 15 − 42 also gives 93. The ending on-hand quantity is 93.