If 20 more units were received after the period, what would be the ending on-hand quantity?

If 20 more units were received after the period, what would be the ending on-hand quantity?

• A. 93
• B. 103
• C. 113
• D. 123

Answer: (C)

Adding inventory received after the period increases the on-hand amount. So to find the ending on-hand with the extra 20 units, you add 20 to the amount reported at the end of the period before this receipt. If the period-end on-hand is 93, then 93 + 20 = 113. That’s why 113 is the ending on-hand after including the extra receipt. The other numbers would require different extra receipts (for example, 10 more would give 103; 30 more would give 123).

Adding inventory received after the period increases the on-hand amount. So to find the ending on-hand with the extra 20 units, you add 20 to the amount reported at the end of the period before this receipt. If the period-end on-hand is 93, then 93 + 20 = 113. That’s why 113 is the ending on-hand after including the extra receipt. The other numbers would require different extra receipts (for example, 10 more would give 103; 30 more would give 123).