Turney Company produces and sells automobile batteries, the heavy-duty HD-240. T

Question

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

Quarter

HD-240

The January 1, 2017, inventory of HD-240 is 2,000 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.

Quarter

HD-240

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up   Statementshowing Computations Paticulars Q1 2017 Q2 2017 Q3 2017 Q4 2017 Total Q1 2018 Sales in Units                 5,000.00                 7,000.00                 8,000.00            10,000.00            30,000.00              6,250.00 Ending Inventory =40% of next Q sales                 2,800.00                 3,200.00                 4,000.00              2,500.00              2,500.00 Total requirement in Units = Sales + Ending Inv                 7,800.00              10,200.00              12,000.00            12,500.00            32,500.00 Less Beginning Inventory                 2,000.00                 2,800.00                 3,200.00              4,000.00              2,000.00 Production in units = Total - Beginning                 5,800.00                 7,400.00                 8,800.00              8,500.00            30,500.00

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