Question

Rossini Company has budgeted production for next year as follows:Quarter First Second Third FourthUnits to be sold 53,400 80,200 94,000

At the beginning of the year, Rossini is expected have 5,340 units of the product. At the end of each quarter, Rossini would like to have an inventory equal to 10% of the sales units of the next quarter.How many units should Rossini produce in the second quarter?A. 80,200 unitsB. 81,580 unitsC. 56,080 unitsD. 78,820 unitsE. None of the above

Answer 1

The correct answer is B.

Step-by-step explanation:

Giving the following information:

Rossini Company has budgeted production for next year as follows: Quarter First Second Third FourthUnits to be sold 53,400 80,200 94,000

At the end of each quarter, Rossini would like to have an inventory equal to 10% of the sales units of the next quarter.

Production:

2nd Quarter= 80,200

Ending inventory= (94,000*0.10)= 9,400

Beginning inventory= (80,200*0.10)= 8,020 (-)

Total= 81,580 units