Shocker Corporation's sales budget shows quarterly sales for the next year as follows:
Unit sales
|
Quarter 1 |
10,000 units |
|
Quarter 2 |
8,000 units |
|
Quarter 3 |
12,000 units |
|
Quarter 4 |
14,000 units |
Corporation policy is to have a finished goods inventory at the end of each quarter equal to 20% of the next quarter's sales. Budgeted production for the second quarter of the next year would be:
7,200 units
8,000 units
8,800 units
8,400 units
