Question - Pletcher Company produces and sells automobile batteries, the heavy-duty HD-240. The 2011 sales budget is as follows.
|
Quarter
|
HD-240
|
|
1
|
4,600
|
|
2
|
7,390
|
|
3
|
7,760
|
|
4
|
11,970
|
The January 1, 2011, inventory of HD-240 is 2,870 units. Management desires an ending inventory each quarter equal to 60% 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.
Prepare quarterly production budgets for each quarter and in total for 2011.