Prepare quarterly production budgets for each quarter

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Question - Crane Company produces and sells automobile batteries, the heavy-duty HUI-240. The 2020 sales forecast is as follows.

Quarter

HD-240

1

5,100

2

7,410

3

8,180

4

10,470

The January 1, 2020, inventory of HD-240 is 2,040 units. Management desires an ending inventory each quarter equal to 40% of the next quarter's sales. Sales in the ?rst quarter of 2021 are expected to be 25% higher than sales in the same quarter in 2020.

Prepare quarterly production budgets for each quarter and in total for 2020.

Reference no: EM132601800

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