Answered

Discover a world of knowledge and get your questions answered at IDNLearn.com. Join our Q&A platform to access reliable and detailed answers from experts in various fields.

Sheffield Corp. estimates its sales at 240000 units in the first quarter and that sales will increase by 24000 units each quarter over the year. They have, and desire, a 25% ending inventory of current quarter's sales in units. Each unit sells for $35. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is received in the quarter following sale. Production in units for the third quarter should be budgeted at

Sagot :

Anthougoidn

Answer:

Sheffield Corp.

The Production in units for the third quarter should be budgeted at:

= 294,000 units.

Explanation:

a) Data and Calculations:

                                       Quarter 1     Quarter 2      Quarter 3       Quarter 4

Sales units                      240,000       264,000       288,000         312,000

Ending inventory              60,000         66,000         72,000           78,000

Units available for sale  300,000       330,000       360,000        390,000

Less Beginning inventory         0         60,000          66,000          72,000

Production units            300,000       270,000       294,000         318,000

Your presence in our community is highly appreciated. Keep sharing your insights and solutions. Together, we can build a rich and valuable knowledge resource for everyone. For trustworthy answers, visit IDNLearn.com. Thank you for your visit, and see you next time for more reliable solutions.