The Colson Company has budgeted sales for the year as follows:
$$\begin{array} { | l | l | l | l | l | }
\hline \text { Quarter } & 1 & 2 & 3 & 4 \
\hline \text { Sales in urits } & 12,000 & 14,000 & 18,000 & 16,000 \
\hline
\end{array}$$
The ending inventory of finished goods for each quarter should equal 25% of the next quarter's budgeted sales in units. The finished goods inventory at the start of the year is 3,000 units.
-Scheduled production for the second quarter is (in units):

Question

The Colson Company has budgeted sales for the year as follows:
$$\begin{array} { | l | l | l | l | l | } 
\hline \text { Quarter } & 1 & 2 & 3 & 4 \
\hline \text { Sales in urits } & 12,000 & 14,000 & 18,000 & 16,000 \
\hline
\end{array}$$
The ending inventory of finished goods for each quarter should equal 25% of the next quarter's budgeted sales in units. The finished goods inventory at the start of the year is 3,000 units. 
-Scheduled production for the second quarter is (in units):

Quizplus · Accepted Answer

To calculate the scheduled production for the second quarter, use the formula: Production = Sales + Ending Inventory - Beginning Inventory. For Q2: Sales = 14,000, Ending Inventory = 25% of Q3 sales = 4,500, Beginning Inventory = 25% of Q2 sales = 3,500. Production = 14,000 + 4,500 - 3,500 = 15,000 units.

The Colson Company Has Budgeted Sales for the Year as Follows