Question
What if Clapton Company in Example 9-1 Download Example 9-1 changed their desired ending inventory level to equal 20.9% of next quarter's budgeted sales instead
What if Clapton Company in Example 9-1 Download Example 9-1 changed their desired ending inventory level to equal 20.9% of next quarter's budgeted sales instead of 20%. How many budgeted units would be produced in the 2nd quarter (April-June)?
Round your answer to the nearest whole unit.
Clapton Companys sales budget shows the following projections for the year ending December 31, 2017:
| Quarters | Guitars |
| First (Jan -March) | 30,000 |
| Second (April June) | 40,000 |
| Third (July Sept) | 22,500 |
| Fourth (Oct Dec) | 27,500 |
| Total | 120,000 |
|
|
|
| First Quarter 2018 | 34,500 |
Inventory at December 31, 2016 was budgeted at 6000 guitars. The quantity of finished goods inventory at the end of each quarter is to equal 20 percent of the next quarters budgeted unit sales. How much should the production budget show for units to be produced for each quarter in 2017?
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