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Sales Budget For the Year Ended December 31, 2021 Quarter 1 2 3 4 Year Expected Unit Sales 3000 3500 3400 4100 18000 Unit Selling

Sales Budget
For the Year Ended December 31, 2021
Quarter
1 2 3 4 Year
Expected Unit Sales 3000 3500 3400 4100 18000
Unit Selling Price $60 $60 $60 $60 $60
Total Sales $180,000 $210,000 $204,000 $246,000 $840,000
Prodution Budget
For the Year Ended December 31, 2021
Quarter
1 2 3 4
Expected Unit Sales 3000 3500 3400 4100
Add: Desired ending finished goods units 1050 1020 1230 3000
Total Required units 4050 4520 4630 7100
Less: Beginning finished goods units 1000 1050 1020 1230
Required production units 3050 3470 3610 5870 16000

The desired finished inventory in any quarter is 30% of the projected sales of the next quarter. The desired ending inventory of direct materials in any quarter is 10% of what is needed to produce the units in the next quarter. Based on the information above, if projected sales for quarter 3 in decreased by 600 units to 4000 units, what will be the Required production units in the second AND third quarter?

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