The correct answer is B.
The first step in filling in missing values is to analyze the descriptions of the information given and figure out the relationships between them.
The CODE is a way to identify the type of inventory.
AMOUNT ON HAND refers to the number of units in the warehouse.
PROJECTED USAGE refers to number of units the company expects to use over the next period.
The PRICE tells us how much each unit costs.
MISSING likely refers to difference between the number of units in the warehouse and the number of units the company expects to use. If this is true, we would be able to formulate the equation:
(1) PROJECTED USE – AMOUNT ON HAND = MISSING
We can now take a row with these given values to check that this equation is in fact correct.
We will use Row 1 (TPO-1923), as it is the only row with all of these values given.
712 – 694 = 18, which is in fact the value given to MISSING.
TOTAL COST may refer to the total cost of the inventory on hand, the total cost of the projected usage or the total cost of the missing inventory. If we divide the TOTAL COST of TPO-1923 by the PRICE, we will see that 342 ÷ 19 = 18 which represents the MISSING value. We can therefore conclude that:
(2) PRICE × MISSING = TOTAL COST
Now that we have identified the correct equations, we simply need to place the correct numbers into the equations to find the missing values.
(I) is the MISSING value for item TPO-1780.
If we place the values given into equation (1) we will get: 81 – 13 = 68.