A company estimates its quarter wise sales (in units) for the next year as under: Quarter I II III IV Sales (units) 30,000 37,500 41,250 45,000 The opening stock of finished goods is 10,000 units and the company expects
CS Executive · Cost and Management Accounting · PYQS · June 2015
A company estimates its quarter wise sales (in units) for the next year as under: Quarter I II III IV Sales (units) 30,000 37,500 41,250 45,000 The opening stock of finished goods is 10,000 units and the company expects to maintain the closing stock of finished goods at 16,250 units at the end of the year. The production pattern in each quarter is based on 80% of the sales of the current quarter and 20% of the sales of the next quarter. The production for quarter IV will be —
Answer & Explanation:
Correct Answer: Option (C)
Official answer key: (C).
Topics: Production Budget
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