Transcribed Image Text: CENT The TESS Company has budgeted sales for the year as follows: Quarter 1 10,000 Quarter 2 12,000 Quarter 3 14,000 Quarter 4 16,000 Sales in units

Transcribed Image Text: CENT
The TESS Company has budgeted sales for the year as follows:
Quarter 1
10,000
Quarter 2
12,000
Quarter 3
14,000
Quarter 4
16,000
Sales in units
The ending inventory of finished goeds for each quarter should equal 25% of the next quarter’s
budgeted sales In units. The finished goods inventory at the start of the year is 2,500 units.
Four pounds of raw materials are required for each unit produced. Raw materials on hand at the
start of the year total 4,200 pounds. The raw materials inventory at the end of each quarter
should equal 10% of the next quarter’s production needs In material.
Required:
1. How many unfts should be produced in the third quarter?
2. How many pounds of materials should be purchased for the second quarter?
WERSIT