52. CSO: 1A4a LOS: 1A4f
Streeter Company produces microwave turntables. Sales for the next year are expected to
be 65,000 units in the first quarter, 72,000 units in the second quarter, 84,000 units in the
third quarter, and 66,000 units in the fourth quarter. Streeter usually maintains a finished
goods inventory at the end of each quarter equal to one half of the units expected to be
sold in the next quarter. However, due to a work stoppage, the finished goods inventory
at the end of the first quarter is 8,000 units less than it should be. How many units should
Streeter produce in the second quarter?
a. 75,000 units.
b. 78,000 units.
c. 80,000 units.
d. 86,000 units.
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