Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Your answer is partially correct. Try again. Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2017 sales forecast is as follows. Quarter

Your answer is partially correct. Try again.

Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2017 sales forecast is as follows.

Quarter HD-240
15,500
27,420
38,260
410,130

The January 1, 2017, inventory of HD-240 is2,200units. Management desires an ending inventory each quarter equal to 40% of the next quarters sales. Sales in the first quarter of 2018 are expected to be 25% higher than sales in the same quarter in 2017.

Prepare quarterly production budgets for each quarter and in total for 2017.

TURNEY COMPANY Production Budget For the Year Ending December 31, 2017For the Month Ended December 31, 2017For the Quarter Ended December 31, 2017
Product HD-240
Quarter
1 2 3 4 Year
Expected Unit SalesRequired Production UnitsTotal Materials RequiredDesired Ending Finished Goods UnitDirect Materials Per UnitTotal Required UnitsBeginning Finished Goods UnitBeginning Direct MaterialsDesired Ending Direct MaterialsDirect Materials Purchases
AddLess: Required Production UnitsDirect Materials Per UnitDesired Ending Finished Goods UnitDirect Materials PurchasesExpected Unit SalesTotal Materials RequiredTotal Required UnitsBeginning Finished Goods UnitBeginning Direct MaterialsDesired Ending Direct Materials
Beginning Finished Goods UnitDirect Materials PurchasesTotal Materials RequiredTotal Required UnitsExpected Unit SalesDesired Ending Direct MaterialsBeginning Direct MaterialsDirect Materials Per UnitDesired Ending Finished Goods UnitRequired Production Units
AddLess: Desired Ending Direct MaterialsDirect Materials PurchasesExpected Unit SalesDesired Ending Finished Goods UnitTotal Materials RequiredDirect Materials Per UnitRequired Production UnitsTotal Required UnitsBeginning Finished Goods UnitBeginning Direct Materials
Total Required UnitsBeginning Finished Goods UnitRequired Production UnitsDesired Ending Finished Goods UnitDesired Ending Direct MaterialsDirect Materials Per UnitTotal Materials RequiredBeginning Direct MaterialsDirect Materials PurchasesExpected Unit Sales

image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting A Managerial Emphasis

Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav

13th Edition

8120335643, 136126634, 978-0136126638

Students also viewed these Accounting questions