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.