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The Colson Company has budgeted sales for the year as follows: Quarter 1 2 3 4...

The Colson Company has budgeted sales for the year as follows:

Quarter 1 2 3 4
Sales in units 13,300 15,300 19,200 17,300


The ending inventory of finished goods for each quarter should equal 25% of the next quarter's budgeted sales in units. The finished goods inventory at the start of the year is 4,300 units. Scheduled production for the third quarter is (in units)

  • 17,750 units.

  • 19,675 units.

  • 18,725 units.

  • 19,200 units.

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Answer Third Quarter Opeing inventory for the third quarter is equal to the closing of second quarter which is 25% of budgete

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