Question: Shocker Company's sales budget shows quarterly sales for the next year as:
Unit sales
Quarter 1..... 10,000 units
Quarter 2..... 8,000 units
Quarter 3..... 12,000 units
Quarter 4..... 14,000 units
Company policy is to have a finished goods inventory at the end of each quarter equal to 20% of the next quarter's sales. Budgeted production for the second quarter of the next year would be:
- 7,200 units.
- 8,000 units.
- 8,800 units.
- 8,400 units.