Answer:
Instructions are below.
Explanation:
Giving the following information:
Beginning inventory= 208,500 units.
Sales:
second quarter= 417,000 units
third quarter= 469,000 units
fourth quarter= 289,500 units.
Desired ending inventory= 50% of the next quarter's budgeted sales.
To calculate the production for each quarter, we need to use the following formula:
Production= sales + desired ending inventory - beginning inventory
Second-quarter:
Sales= 417,000
Desired ending inventory= 0.5*469,000= 234,500
Beginning inventory= (208,500)
Total production= 443,000
Third-quarter:
Sales= 469,000
Desired ending inventory= 0.5*289,500= 144,750
Beginning inventory= (234,500)
Total production= 379,250
