ACCOUNTING EXPERT TODAY 2

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Business Finance

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Palermo Company estimates that unit sales will be 10,500 in quarter 1; 12,500 in quarter 2; 14,600 in quarter 3; and 18,900 in quarter 4. Management desires to have an ending finished goods inventory equal to 22% of the next quarter’s expected unit sales. Prepare a production budget by quarters for the first 6 months of 2014. PALERMO COMPANY Production Budget For the Six Months Ending June 30, 2014 Quarter 1 Expected Unit Sales Add 10500 14600 : Desired Ending Finished Goods Inventory Total Required Units Less 2 2310 121810 : Beginning Finished Goods Inventory Required Production Units 3212 9598 Click if you would like to Show Work for this question: Open Show Work Six Months
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