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Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2020 sales forecast is as follows. Quarter HD-240 1 5,200 2 7,240 3 8,360
Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2020 sales forecast is as follows.
Quarter | HD-240 |
1 | 5,200 |
2 | 7,240 |
3 | 8,360 |
4 | 10,310 |
The January 1, 2020, inventory of HD-240 is 2,080 units. Management desires an ending inventory each quarter equal to 40% of the next quarters sales. Sales in the first quarter of 2021 are expected to be 25% higher than sales in the same quarter in 2020. Prepare quarterly production budgets for each quarter and in total for 2020.
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