Question - Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2017 sales forecast is as follows.
|
Quarter
|
HD-240
|
|
1
|
5,500
|
|
2
|
7,420
|
|
3
|
8,260
|
|
4
|
10,130
|
The January 1, 2017, inventory of HD-240 is 2,200 units. Management desires an ending inventory each quarter equal to 40% of the next quarter's sales. Sales in the first quarter of 2018 are expected to be 25% higher than sales in the same quarter in 2017.
Prepare quarterly production budgets for each quarter and in total for 2017.