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At Hanson Co., sales for the second and third quarters of the upcoming year are budgeted to be 8,000 units and 12,000 units, respectively. Management
At Hanson Co., sales for the second and third quarters of the upcoming year are budgeted to be 8,000 units and 12,000 units, respectively. Management has determined that ending inventory in each quarter should be 20% of the following quarter's sales. In preparing the Production Budget for Hanson Co., the number of units to be produced in the second quarter for next year would be: (HINT: Assume that the first quarter ending inventory is budgeted at 20% of the second quarter's sales):
a. 8,800 | ||
b. 8,000 | ||
c. 7,200 | ||
d. 8,400 |
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