Question & Answer: Electro Company manufactures an innovative automobile transmission for electric cars. Management predicts that…..

value: 10.00 points Electro Company manufactures an innovative automobile transmission for electric cars. Management predicts that ending finished goods inventory for the first quarter will be 174,000 units. The following unit sales of the transmissions are expected during quarter, 356,000 units; and fourth quarter, 312,500 units. Company policy calls for the ending finished goods inventory of a quarter to equal 40% of the next quarters budgeted sales. (Ending inventory for the the rest of the year second quarter, 435,000 units; third frest quarter does not comply with company pollay) Prepare a production budget for both the second and third quarters that shows the number of transmissions to manufacture. o COMPANY Production Budget Second and Third Quarters Second Quarter Third Quarter Required units of available production Units to be produced

Electro Company manufactures an innovative automobile transmission for electric cars. Management predicts that ending finished goods inventory for the first quarter will be 174,000 units. The following unit sales of the transmissions are expected during the rest of the year: second quarter, 435,000 units: third quarter, 356,000 units: and fourth quarter, 312, 500 units. Company policy calls for the ending finished goods inventory of a quarter to equal 40% of the next quarter’s budgeted sales. (Ending inventory for the first quarter does not comply with company policy.) Prepare a production budget for both the second and third quarters that shows the number of transmissions to manufacture.

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Question & Answer: Electro Company manufactures an innovative automobile transmission for electric cars. Management predicts that..... 1

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