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Unformatted text preview: Hayes Company believes it can meet future sales requirements by maintaining an ending inventory equal to 20% of the next quarter's budgeted sales volume. For example, the ending finished goods inventory for the first quarter is 700 units (20% anticipated second-quarter sales of 3,500 units). Illustration 20-5 shows the production budget. Illustration 20-5 Production budget The production budget, in turn, provides the basis for the budgeted costs for each manufacturing cost element, as explained below....
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- Fall '11