Question
A company provided the following information on sales for the coming year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Units40,000 40,000 30,000 80,000 Average
A company provided the following information on sales for the coming year:
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
Units40,000
40,000
30,000
80,000
Average selling price$5
$5
$5
$6
Assuming that the beginning inventory is 3,000 units, and that the company policy is to have 25% of the next quarter's sales in ending inventory, which quarter will have the lowest production?
a.All quarters have the same production
b.Quarter 2
c.Quarter 1
d.Quarter 4
e.Quarter 3
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Managerial Accounting
Authors: Wendy M. Tietz, Louis Beaubien, Karen W. Braun
3rd Canadian edition
