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grandymaker [24]
4 years ago
14

The ending inventory of finished goods for each quarter should equal 20% of the next quarter's budgeted sales in units. The fini

shed goods inventory at the start of the year is 3,600 units. Scheduled production for the second quarter is (in units):
Business
1 answer:
ale4655 [162]4 years ago
5 0

Answer:

Instructions are below.

Explanation:

Giving the following information:

The ending inventory of finished goods for each quarter should equal 20% of the next quarter's budgeted sales in units. The finished goods inventory at the start of the year is 3,600 units.

<u>We weren't provided with enough information to solve the problem. But, I will leave the formula and a small example to guide an answer.</u>

<u></u>

Purchases= sales + desired ending inventory - beginning inventory

For example:

Sales 2nd Quarter= 27,000 units

Sales 3rd Quarter= 45,000 units

Production budget (in units):

Sales= 27,000

Desired ending inventory= (45,000*0.20)= 9,000

Beginning inventory= (3,600)

Total= 32,400 units

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