Question - Pletcher Company produces and sells automobile batteries, the heavy-duty HD-240. The 2011 sales forecast is as follows.
Quarter HD-240
1 5,000
2 7,000
3 8,000
4 10,000
The January 1, 2011, inventory of HD-240 is 2,500 units. Management desires an ending inventory each quarter equal to 50% of the next quarter's sales. Sales in the first quarter of 2012 are expected to be 30% higher than sales in the same quarter in 2011.
Instructions - Prepare Quarterly production budgets for each quarter and in total for 2011.