Superior Industries’ sales budget shows quarterly sales for the next year as follows: Quarter Sales (Units) First 10,000 Second 8,000 Third 12.000 Fourth 14,000 Company policy is to have a finished goods inventory at the end of each quarter equal to 20% of the next quarter’s sales. What should be the budgeted production for the second quarter?
a) 7,200 units. b) 8.000 units. c) 8,400 units. d) 8,800 units.
Darshita Changed status to publish July 24, 2020
Answer: 8800 units
Explaination
| budgeted production | second quarter | |
| Expected unit sales | 8000 | |
| add ending inventory | 2400 | |
| total needs | 10400 | |
| less beginning inventory | 1600 | |
| budgeted production | 8800 | units |
Darshita Changed status to publish July 24, 2020
