Wise company estimates the following unit sales. 1st quarter - 20,000 units 2nd quarter - 26,000 units 3rd quarter - 30,000 units 4th quarter - 33,000 units management desires to have an ending finished goods inventory equal to 20% of the next quarter's expected sales. what is the budgeted production in units for the 2nd quarter?

Since 20% of the goods of the next quarter need to be produced beforehand in the second quarters start there will already be a starting inventory of (0.2*26,000)=5,200

This means that in the second quarter to meet the the sales (26,000-5,200)=20,800 need to be produced

Also 20% of next quarters unit sales also needs to be produced in the second quarter so (0.2*30,000)=6000

Budgeted production in the 2nd quarter= 20,800+6,000=34,000

Explanation:

lbc corporation makes and sells a product called product wz. each unit of product wz requires 4.1 hours of direct labor at the rate of $20.00 per direct labor-hour. management would like you to prepare a direct labor budget for june. the company plans to sell 28,000 units of product wz in june. the finished goods inventories o

answer; burned it;