Question

Radiant Industries sales budget shows quarterly sales for the next year as​ follows: Quarter 1dash15 comma 000​; Quarter 2dash13 comma 000​; Quarter 3dash17 comma 000​; Quarter 4dash19 comma 000. Company policy is to have a target​ finished-goods inventory at the end of each quarter equal to 20 % of the next​ quarter's sales. Budgeted production for the second quarter of next year would​ be:

Answer 1

Answer:

Total= 13,800 units

Explanation:

Giving the following information:

Quarter 1: 15,000 units

Quarter 2: 13,000

Quarter 3: 17,000

Company policy is to have a target​ finished-goods inventory at the end of each quarter equal to 20 % of the next​ quarter's sales.

2nd Quarter production:

Sales= 13,000

Ending balance= 17,000*0.20= 3,400

Beginning balance= 13,000*0.2= (2,600)

Total= 13,800 units