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Katyanochek1 [597]
3 years ago
9

Jolly Company wants to have​ 10% of the next​ quarter's sales in units on hand at the end of each quarter. Inventory at the begi

nning of the year was​ 3,800 hula hoops. How many hula hoops should Jolly Company produce during the first​ quarter?
Business
1 answer:
Crazy boy [7]3 years ago
4 0

Answer:

A. 29,100 units

Explanation:

The computation of the number of hula hoops produced during the first year is shown below:

Production = Budgeted sales + budgeted desired inventory - budgeted beginning inventory  

where,

Budgeted sales = 23,900

Budgeted desired inventory = 90,000 × 10% = 9,000

And, budgeted beginning inventory = 3,800

So the number of hula hoops is

= 23,900 units + 9,000 units - 3,800 units

= 29,100 units

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