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Palermo Company production budget

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Sales budget data for Palermo Company are given in BE9-2. Management desires
to have an ending finished goods inventory equal to 25% of the next quarter’s expected unit
sales. Prepare a production budget by quarters for the first 6 months of 2014

Data from BE9-2
Palermo Company estimates that unit sales will be 10,000 in quarter 1; 12,000 in
quarter 2; 15,000 in quarter 3; and 18,000 in quarter 4.

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