Question
#5 Electro Company manufactures an innovative automobile transmission for electric cars. Management predicts that ending finished goods inventory for the first quarter will be 110,800
#5
| Electro Company manufactures an innovative automobile transmission for electric cars. Management predicts that ending finished goods inventory for the first quarter will be 110,800 units. The following unit sales of the transmissions are expected during the rest of the year: second quarter, 277,000 units; third quarter, 495,000 units; and fourth quarter, 250,500 units. Company policy calls for the ending finished goods inventory of a quarter to equal 40% of the next quarter's budgeted sales. (Ending inventory for the first quarter does not comply with company policy.) |
| Prepare a production budget for both the second and third quarters that shows the number of transmissions to manufacture. | ||||||||||||||||||||||||||||||
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EDI Security Control And Audit
Authors: Albert J. Marcella Jr, Sally Chan, John Merriam
1st Edition
0890066108, 978-0890066102
