Superior Industries’ sales budget shows quarterly sales for the next year as follows:
Quarter Sales
(units)
First . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000
Second . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,000
Third . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000
Fourth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,000
Company policy is to have a finished goods inventory at the end of each quarter equal to 30% of the next quarter’s sales. How much should the budgeted production for the second of next year wouldquarter be?

Answer rating: 100% (QA)

Calculation of Budgeted production units Sales Budget and Cash ... View the full answer