Exercise 21-4 Turney Company produces and sells automobile batteries, the heavy-

Question

  
Exercise 21-4
Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2017 sales forecast is as follows.

Quarter
HD-240
1       5,400
2       7,130
3       8,110
4       10,350

The January 1, 2017, inventory of HD-240 is 2,160 units. Management desires an ending inventory each quarter equal to 40% of the next quarter’s 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

Product HD-240
Quarter  
1
2
3
4

Year

:
                              

:
                              

                              
Click if you would like to Show Work for this question:  
Open Show Work

Explanation / Answer

PRODUCTION BUDGET FOR 2017 :

1ST QUARTER 2ND QUARTER 3RD QUARTER 4TH YEAR YEAR Sales units 5400 7130 8110 10350 30990 Add: Desired ending inventory 2852 3244 4140 2700 2700 Total needs 8252 10374 12250 13050 33690 Less: Beginning inventory (2160) (2852) (3244) (4140) (2160) Production units 6092 7522 9006 8910 31530

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.