Prepare quarterly production budgets for each quarter

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Reference no: EM132514432

Villa Company produces and sells automobile batteries, the heavy-duty HD-240. The 2016 sales budget is as follows.

Quarter         1           2        3         4

HD-240           6000     7000    9000      10000

  • The January 1, 2016, inventory of HD-240 is 1,500 units. Management desires an ending inventory each quarter equal to 30% of the next quarter's sales. Sales in the first quarter of 2017 are expected to be 25% higher than sales in the same quarter in 2016.

Instructions

Question 1: Prepare quarterly production budgets for each quarter and in total for 2016.

Reference no: EM132514432

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