ABC Company’s sales budget shows a quarterly sales for the next year as follows: Quarter Units Quarter Units 1 14,500 3 17,400 2 11,600 4 20,300 Company policy is to have a finished goods inventory at the end of each quarter equal to 20% of the net quarter’s sales. Budgeted production for the second quarter of the next year would be a. 10,440 units b. 11,600 units c. 12,180 units d. 12,760 units

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 15E: Palmgren Company produces consumer products. The sales budget for four months of the year is...
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ABC Company’s sales budget shows a quarterly sales for the next year as follows: Quarter Units Quarter Units 1 14,500 3 17,400 2 11,600 4 20,300 Company policy is to have a finished goods inventory at the end of each quarter equal to 20% of the net quarter’s sales. Budgeted production for the second quarter of the next year would be a. 10,440 units b. 11,600 units c. 12,180 units d. 12,760 units
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