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Jolly Company produces hula hoops. Jolly Company has the following sales projections for the upcoming​ year:

First quarter budgeted hula hoop sales in units

22,900

Second quarter budgeted hula hoop sales in units

80,000

Third quarter budgeted hula hoop sales in units

22,000

Fourth quarter budgeted hula hoop sales in units

26,000

Jolly Company wants to have 10% of the next​ quarter's sales in units on hand at the end of each quarter. Inventory at the beginning of the year was

3, 900 hula hoops. How many hula hoops should Jolly Company produce during the first​ quarter?

A.

27,000

B.

34,800

C.

19,000

D.

22,900

Respuesta :

facundobuzzetti

Answer:

The correct answer is A.

Explanation:

Giving the following information:

First quarter budgeted hula hoop sales in units

22,900

Second quarter budgeted hula hoop sales in units

80,000

Jolly Company wants to have 10% of the next​ quarter's sales in units on hand at the end of each quarter. Inventory at the beginning of the year was

3, 900 hula hoops.

Production 1st quarter:

Sales= 22,900 units

Ending inventory= (80,000*0.10)= 8,000

Beginning inventory= 3,900 (-)

Total porduction= 27,000 units

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