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Able Industries sales budget shows quarterly sales for the next year as follows: Quarter 1-11,000; Quarter 2-9,000; Quarter 3

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Answer #1

Budgeted production for second year

= Budgeted sales + Desired ending inventory - Beginning inventory

= 9,000 + (13,000*10%) - (9,000*10%)

= 9,000 + 1,300 - 900

= 9400

Option A is the answer

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