Question
Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2021 sales budget is as follows. Quarter HD-240 1 4,000 2 6,000 3 7,000
Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2021 sales budget is as follows.
| Quarter | HD-240 |
| 1 | 4,000 |
| 2 | 6,000 |
| 3 | 7,000 |
| 4 | 10,000 |
The January 1, 2014, inventory of HD-240 is 3,000 units. Management desires an ending inventory each quarter equal to 40% of the next quarter's sales. Sales in the first quarter are expected to be 25%higher than sales in the same quarter in 2021.
Instructions:
Prepare quarterly production budgets for quarter and in total for 2021.
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Financial Accounting Tools for Business Decision Making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
5th Edition
9781118560952, 1118560957, 978-0470239803
