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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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