What should be the budgeted production for second quarter

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Reference no: EM132552863

Superior Industries' sales budget shows quarterly sales for the next year as follows:

Quarter       Sales (Units)

First            10,000

Second          8,000

Third           12,000

Fourth          14,000

Question 1: Company policy is to have a finished goods inventory at the end of each quarter equal to 20% of the next quarter's sales. What should be the budgeted production for the second quarter?

a) 8400 units

b) 7200 units

c) 8800 units

d) 8000 units

Reference no: EM132552863

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