Answer:
The monetary value of the ending inventory amounts to $7,500,000
Explanation:
To determine the dollar value of the ending inventory, the following formula should be applied:
Ending inventory = (Beginning inventory + production - sales). $
Here are the values for this case:
- Beginning inventory: 10,000 units
- Production for January: 20,000 units
- Sales during January: 15,000 units
Ending inventory = 10,000 + 20,000 - 15,000
Ending inventory = 15,000 units
Dollar value = 15000 units × $500 = $7,500,000