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Prepare quarterly production budgets for each quarter

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Question - Pletcher Company produces and sells automobile batteries, the heavy-duty HD-240. The 2011 sales forecast is as follows.

Quarter                     HD-240

1                              5,000

2                              7,000

3                              8,000

4                              10,000

The January 1, 2011, inventory of HD-240 is 2,500 units. Management desires an ending inventory each quarter equal to 50% of the next quarter's sales. Sales in the first quarter of 2012 are expected to be 30% higher than sales in the same quarter in 2011.

Instructions - Prepare Quarterly production budgets for each quarter and in total for 2011.

Reference no: EM131765237

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