Electro Company manufactures an Innovative automobile transmission for electric cars. Management predicts that ending finished goods Inventory for the first quarter will be 191,200 units. The following unit sales of the transmisslons are expected during the rest of the year: second quarter, 478,000 units; third quarter, 452,000 units; and fourth quarter, 288,500 units. Company policy calls for the ending finished goods inventory of a quarter to equal 40% of the next quarter's budgeted sales. Prepare a production budget for both the second and third quarters that shows the number of transmissions to manufacture. ELECTRO COMPANY Production Budget Second and Third Quarters Second Quarter Third Quarter Required units of available production Units to be produced

Electro Company manufactures an Innovative automobile transmission for electric cars. Management predicts that ending finished goods Inventory for the first quarter will be 191,200 units. The following unit sales of the transmisslons are expected during the rest of the year: second quarter, 478,000 units; third quarter, 452,000 units; and fourth quarter, 288,500 units. Company policy calls for the ending finished goods inventory of a quarter to equal 40% of the next quarter's budgeted sales. Prepare a production budget for both the second and third quarters that shows the number of transmissions to manufacture. ELECTRO COMPANY Production Budget Second and Third Quarters Second Quarter Third Quarter Required units of available production Units to be produced

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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