FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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ABC Company’s sales budget shows a quarterly sales for the next year as follows:
Quarter Units Quarter Units
1 14,500 3 17,400
2 11,600 4 20,300
Company policy is to have a finished goods inventory at the end of each quarter
equal to 20% of the net quarter’s sales. Budgeted production for the second
quarter of the next year would be
a. 10,440 units
b. 11,600 units
c. 12,180 units
d. 12,760 units
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