ACCA MA · Chapter 4 · Question 10 of 11
A stores record shows 2,400 units of a material physically in stock, 1,500 units on order from suppliers but not yet received, and 1,100 units set aside for production orders but not yet issued. What is the free inventory?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) 2,800 units
Explanation
Free inventory = physical inventory + outstanding replenishment orders - unfulfilled requirements (allocated) = 2,400 + 1,500 - 1,100 = 2,800 units.
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