Superior Industries' sales budget shows quarterly sales for the next year as follows: Company policy is to have a finished goods inventory at the end of each quarter equal to 20% of the next quarter's sales.Budgeted production for the second quarter should be:

Question

Quizplus · Accepted Answer

11eaaee8_6710_7a18_933a_0d09e7d4dc62_TB5186_00 Units produced = Ending inventory + Units sold - Beginning inventory
= (12,000 F1F1F1S1F1F1F10 20%) + 8,000 - (8,000 F1F1F1S1F1F1F10 20%)
= 2,400 + 8,000 - 1,600 = 8,800

Superior Industries' Sales Budget Shows Quarterly Sales for the Next