E9.4 (LO 2), AP Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2022 sales forecast is as follows.

Quarter HD-240 1 5,000 2 7,000 3 8,000 4 10,000 The January 1, 2022, inventory of HD-240 is 2,000 units. Management desires an ending inventory each quarter equal to 40% of the next quarters sales. Sales in the first quarter of 2023 are expected to be 25% higher than sales in the same quarter in 2022.

Instructions

Prepare quarterly production budgets for each quarter and in total for 2022.

Prepare a direct materials purchases budget.