The VP of operations requests that ending inventory of 1-gallon containers on December 31, 2018, be 300 comma 000 units. If the production budget calls for Saphire to produce 1 comma 200 comma 000 1-gallon containers during 2018, what is the beginning inventory of 1-gallon containers on January 1, 2018?

Hi, the information you have provided is missing information regarding the Budgeted Sales of 1-gallon containers During the year.

However, the following points are provided to help solve the problem.

The Beginning inventory of 1-gallon containers on January 1, 2018 can be determined using the missing figure approach.

Production Budget for the year end  December 31, 2018

                                                                1-gallon containers

Budgeted Production                                    1,200,000

Less Budgeted Sales  (amount missing)           XXX

Less  Budgeted Closing Stock                      (300,000)

Budgeted opening Stock                                   XXX

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