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Turney Company produces and sells automobile batteries, the heavy-duty HD-240.
The 2014 sales forecast is as follows.Quarter HD-2401 ......................... 5,0002 ......................... 7,0003 ......................... 8,0004 ........................ 10,000
The January 1, 2014, 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 2015 are expected to be 25% higher than sales in the same quarter in 2014.
Instructions
Prepare quarterly production budgets for each quarter and in total for 2014.
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