Cost Management: A Strategic Emphasis 7th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins

Exercise 8

Grey Manufacturing Company expects sales to total 13,000 units in the first quarter, 12,000 units in the second quarter, and 15,000 units in the third quarter of the current fiscal year. Company policy is to have on hand at the end of each quarter an amount of inventory equal to 10% of the following quarter's sales. Given this information, how many units should be scheduled for production in the second quarter