JessicaSherman2
Feb 1, 2013, 06:41 PM
Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2014 sales forecast is as follows.
Quarter
HD-240
1 5,100
2 7,240
3 8,280
4 10,440
The January 1, 2014, 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 first quarter of 2015 are expected to be 25% higher than sales in the same quarter in 2014.
Prepare quarterly production budgets for each quarter and in total for 2014
Quarter
HD-240
1 5,100
2 7,240
3 8,280
4 10,440
The January 1, 2014, 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 first quarter of 2015 are expected to be 25% higher than sales in the same quarter in 2014.
Prepare quarterly production budgets for each quarter and in total for 2014