It looks that way. Without an opening inventory for May, and from the answer cheat, then you use zero for opening inventory in May, subtract the 300 from 500 for 200 opening in June and July's opening inventory will be 80.

Just want to make sure this is correct. Im doing absorption and marginal costing and I am given this information:

May June

Production of Product A 500 380

Sales of Product A(units) 300 500

There is no opening inventory for May. However in the solution of the problem it is saying the opening inventory is 200 for june.

My simple question, as dumb as it is i rather be right than sorry, is that the opening inventory was simply calculated by subtracting 300 from 500 for the month of June?

Many thanks!