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Question - Pletcher Company produces and sells automobile batteries, the heavy-duty HD-240. The 2011 sales budget is as follows.
Quarter
HD-240
1
4,600
2
7,390
3
7,760
4
11,970
The January 1, 2011, inventory of HD-240 is 2,870 units. Management desires an ending inventory each quarter equal to 60% 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.
Prepare quarterly production budgets for each quarter and in total for 2011.
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