Flint Company estimates its sales at 120,000 units in the first quarter and that sales will increa - 10537

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yousafbhutta

yousafbhutta

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  • From: Business,
  • Posted on: Tue 29 May, 2012
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Request Description

 

Flint Company estimates its sales at 120,000 units in the first quarter and that sales will increase by 12,000 units each quarter over the year. They have, and desire, a 25% ending inventory of finished goods. Each unit sells for $25. 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 

A

147,000

B

138,000

C

183,000

D

144,000

 

 

Solution Description

 

Flint Company estimates its sales at 120,000 units in the first quarter and that sales will increase by 12,000 units each quarter over the year. They have, and desire, a 25% ending inventory of finished goods. Each unit sells for $25. 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&nb