Clapton Company's sales budget shows the following projections for the year ending December 31, 2017: Guitars Quarters First (Jan -March) Second (April-June) Third (July-Sept) Fourth (Oct- Dec) 30,000 40,000 22,500 27,500 Total 120,000 First Quarter 2018 34,500 Inventory at December 31, 2016 was budgeted at 6000 guitars. The quantity of finishe goods inventory at the end of each quarter is to equal 20 percent of the next quarter's budgeted unit sales. How much should the production budget show for units to be produced for each quarter in 2017?

Clapton Company's sales budget shows the following projections for the year ending December 31, 2017: Guitars Quarters First (Jan -March) Second (April-June) Third (July-Sept) Fourth (Oct- Dec) 30,000 40,000 22,500 27,500 Total 120,000 First Quarter 2018 34,500 Inventory at December 31, 2016 was budgeted at 6000 guitars. The quantity of finishe goods inventory at the end of each quarter is to equal 20 percent of the next quarter's budgeted unit sales. How much should the production budget show for units to be produced for each quarter in 2017?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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