Clapton Company's sales budget shows the following projections for the year ending December 31, 2017: Quarters...

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Clapton Company's sales budget shows the following projections for the year ending December 31, 2017: Quarters First (Jan -March) Second (April June) Third (July-Sept) Fourth (Oct-Dec) Total First Quarter 2018 Guitars 30,000 40,000 22,500 27,500 120,000 34,500 Inventory at December 31, 2016 was budgeted at 6000 guitars. The quantity of finished goods inventory at the end of each quarter is to equal 20 percent of the next quarter's budgeted unit sales. How much should the production budget show for units to be produced for each quarter in 2017? What if Clapton Company changed their desired ending inventory level to equal 18.8% of next quarter's budgeted sales instead of 20%. How many budgeted units would be produced in the 2nd quarter (April-June)? Clapton Company's sales budget shows the following projections for the year ending December 31, 2017: Quarters First (Jan -March) Second (April June) Third (July-Sept) Fourth (Oct-Dec) Total First Quarter 2018 Guitars 30,000 40,000 22,500 27,500 120,000 34,500 Inventory at December 31, 2016 was budgeted at 6000 guitars. The quantity of finished goods inventory at the end of each quarter is to equal 20 percent of the next quarter's budgeted unit sales. How much should the production budget show for units to be produced for each quarter in 2017? What if Clapton Company changed their desired ending inventory level to equal 18.8% of next quarter's budgeted sales instead of 20%. How many budgeted units would be produced in the 2nd quarter (April-June)?

Answer rating: 100% (QA)

To determine the production budget for each quarter in 2017 we need to calculate the desired ending ... View the full answer