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Prepare quarterly production budgets for each quarter

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Question - Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2017 sales forecast is as follows.

Quarter

HD-240

1

5,500

2

7,420

3

8,260

4

10,130

The January 1, 2017, inventory of HD-240 is 2,200 units. Management desires an ending inventory each quarter equal to 40% of the next quarter's sales. Sales in the first quarter of 2018 are expected to be 25% higher than sales in the same quarter in 2017.

Prepare quarterly production budgets for each quarter and in total for 2017.

Reference no: EM132099193

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