Prepare quarterly production budgets for each quarter

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Question - Turner Company produces and sells automobile batteries, the heavy-duty HD-240. The 2022 sales forecast is as follows:

Quarter 1 - 5,000

Quarter 2 - 7,000

Quarter 3 - 8,000

Quarter 4 - 10,000

The January 1, 2022 inventory of HD-240 is 2,000 units. Management desires an ending inventory each quarter equal to 40% of the next quarter's sales. Sales in the first quarter of 2023 are expected to be 25% higher than sales in the same quarter in 2022.

Required - Prepare quarterly production budgets for each quarter and in total for 2022.

Reference no: EM133177727

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