E21-4 Prepare quarterly production budgets
Turney Company produces and sells automobile batteries, the heavy-duty HD-240.
The 2017 sales forecast is as follows.
	Quarter	HD-240
	1	5,000
	2	7,000
	3	8,000
	4	10,000
The January 1, 2017, inventory of HD-240 is 2,000 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.
Instructions
Prepare quarterly production budgets for each quarter and in total for 2017.
TURNEY COMPANY
Production Budget
For the Year Ending December 31, 2017
Product HD-240
				Quarter
				1	2	3	4		Year
Expected unit sales
Add: Desired ending finished goods units
Total required units
Less: Beginning finished goods units
Required production units
		Please include the formulas that follow each amount!