Question
Wayans Company produces and sells automobile batteries, including the heavy-duty HD-240. The 2020 sales budget is as follows: Quarter Units of HD-240 1 5,800 2
Wayans Company produces and sells automobile batteries, including the heavy-duty HD-240. The 2020 sales budget is as follows:
| Quarter | Units of HD-240 | ||
| 1 | 5,800 | ||
| 2 | 6,900 | ||
| 3 | 8,500 | ||
| 4 | 10,500 |
The January 1, 2020, inventory of HD-240 is 1,400 units. Management wants an ending inventory each quarter that is equal to 30% of the next quarters sales. It expects sales in the first quarter of 2021 to be 20% higher than sales in the same quarter in 2020. Prepare quarterly production budgets for each quarter for 2020.
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Introduction To Government And Not For Profit Accounting
Authors: Martin Ives, Laurence Johnson, Joseph R. Razek, Gordon A. Hosch
6th Edition
0132366355, 978-0132366359
