The local San Diego Company SoCal ShakaSurfer Corporation's budgets their sales quarterly. The quarterly sales for the next year (2021) as expressed in units (which are surfboards) are as follows:
Quarter 1 | 11,200 units |
Quarter 2 | 9,850 units |
Quarter 3 | 16,800 units |
Quarter 4 | 16,100 units |
SoCal wants to keep inventory on hand (finished goods inventory) at
the end of each quarter equal to 20% of the next quarter's sales.
So based on all this information, SoCal ShakaSurfer should budget
production to meet this demand for the 2nd quarter of the year to
be:
11,240 units
9,850 units
8,460 units
10,840 units
Budgeted production = Budgeted sales + Desired ending inventory - Beginning inventory = 9,850 + (16,800*20%) - (9,850*20%) = 11,240 units Option A |
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The local San Diego Company SoCal ShakaSurfer Corporation's budgets their sales quarterly. The quarterly sales for...
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