Asked by
Yamilet Jaquez
on Dec 16, 2024Verified
The Waverly Company has budgeted sales for next year as follows: Quarter First Second Third Fourth Sales in units 12,00014,00018,00016,000\begin{array} { | c | l | l | l | l | } \hline \text { Quarter } & \text { First } & \text { Second } & \text { Third } & \text { Fourth } \\\hline \text { Sales in units } & 12,000 & 14,000 & 18,000 & 16,000 \\\hline\end{array} Quarter Sales in units First 12,000 Second 14,000 Third 18,000 Fourth 16,000 The ending inventory of finished goods for each quarter should equal 25% of the next quarter's budgeted sales in units. The finished goods inventory at the start of the year is
3,000 units. Scheduled production in units for the third quarter should be:
A) 17,500.
B) 22,000.
C) 18,500.
D) 13,500.
Budgeted Sales
The projected amount of sales, in units or dollars, expected for a specific period.
Ending Inventory
The total value of all unsold goods remaining at the end of an accounting period.
Finished Goods Inventory
The stock of completed products ready for sale but not yet sold, held by a manufacturing company.
- Conduct analysis and formulation of production budgets dependent on sales predictions and inventory demands.
Verified Answer
SC
Learning Objectives
- Conduct analysis and formulation of production budgets dependent on sales predictions and inventory demands.
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