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Marysya12 [62]
3 years ago
12

The Waverly Company has budgeted sales for the year as follows:

Business
1 answer:
Yanka [14]3 years ago
6 0

Answer:

Production= 15,000 units

Explanation:

Giving the following information:

Sales:

Q2=14,000

Q3=18,000

The ending inventory of finished goods for each quarter should equal 25% of the next quarter's budgeted sales in units.

To calculate the production for the second quarter, we need to use the following formula:

Production= sales + desired ending inventory - beginning inventory

Production= 14,000 + (18,000*0.25) - (14,000*0.25)

Production= 15,000 units

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