Turney Company produces and sells automobile batteries, the heavy duty HD 240.The 2010 sales budget is as follows.

Quarter

HD 240

1

5,000

2

7,000

3

8,000

4

10,000

The January 1, 2010, 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 2011 are expected to be 30% higher than sales in the same quarter in 2010.

Instructions

Prepare quarterly production budgets for each quarter and in total for 2010.