AX Ltd. plans to sell 1,10,000 units of product X in the first quarter, 1,20,000 units in the second quarter, 1,30,000 units in the third quarter and 1,40,000 units in the last quarter. At the beginning of the first quar

CS Executive · Corporate and Management Accounting · PYQS · December 2023
AX Ltd. plans to sell 1,10,000 units of product X in the first quarter, 1,20,000 units in the second quarter, 1,30,000 units in the third quarter and 1,40,000 units in the last quarter. At the beginning of the first quarter, there are 15,000 units of product X in stock. If the company wants to have an inventory equal to one-fifth of the sales for the next quarter, the number of units to be produced in the second quarter will be:
(A) 1,20,000 units
(B) 1,22,000 units
(C) 1,34,000 units
(D) 1,18,000 units

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Management Accounting

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