Accounting Exam

ABC Company is expecting to sell 5,000 units of its product in the first quarter of 2017. The company also predicts the sales will increase by 1,000 units in each succeeding quarter. Management desires an ending inventory in each quarter equal to 10% of the next quarter's sale. ABC has 550 units of inventory available on January 1, 2017.

Prepare a production budget for each quarter.

Car Inc manufactures two products. Model S and Model X. Annual production is 19,500 units for S and 9,500 units for X. (Question Continued)