Shocker Company's sales budget shows quarterly sales for the next year as:
Quarter 1..... 10,000 units
Quarter 2..... 8,000 units
Quarter 3..... 12,000 units
Quarter 4..... 14,000 units
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 of the next year would be:
This solution is comprised of a detailed calculation to find the budgeted production for the Shocker's second quarter of the next year.