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A Company Provided the Following Information on Its Projected Sales

Question 60

Multiple Choice

A company provided the following information on its projected sales for the coming year:  1st Ouarter2nd Ouarter 3rd Ouarter 4th Ouarter  Units 50,00040,00030,00080,000 Average selling price $5$5$5$6\begin{array}{lllll}&\text { 1st Ouarter}&\text {2nd Ouarter }&\text {3rd Ouarter}&\text { 4th Ouarter }\\\text { Units } & 50,000 & 40,000 & 30,000 & 80,000 \\\text { Average selling price } & \$ 5 & \$ 5 & \$ 5 & \$ 6\end{array} Assume that the beginning finished goods inventory is 5,000 units, and that the company policy is to have 25% of the next quarter's sales in ending finished goods inventory. Which quarter will have the lowest production?


A) Quarter 1
B) Quarter 2
C) Quarter 3
D) Quarter 4

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