Question

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 4,000 units. Scheduled production for the second quarter is (in units):

Answer 1

Production for 2nd Quarter = 15,000 units

Step-by-step explanation:

given data

ending inventory of finished goods = 25 %

finished goods inventory at year start = 4,000 units

so we consider here Quarter sales in unit

1 = 12,000

2 = 14,000

3 = 18,000

4 = 16,000

solution

we get here Production for 2nd Quarter that is

Production for 2nd Quarter = Quarter 2 sale + Desired Q2 ending inventory - Beginning Q2 inventory ...................1

so it will be as

Production for 2nd Quarter = Quarter 2 sale + (25% of Q3 Sale) - (25% of Q2 sale)

put here value

Production for 2nd Quarter = 14000 + (18000 × 25%) - (14000 × 25%)

Production for 2nd Quarter = 14000 + 4500 - 3500

Production for 2nd Quarter = 15,000 units