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.

Turney Company produces and sells automobile batteries, the heavy-duty HD-240The 2017 sales forecasts as follows. HD-240 5,100 7,490 8,330 10,350 4 The January 1, 2017, inventory of HD-240 is 2,040 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 il 2 4 esalr LINK TO TEXT Question Attempts: 0 of 1 used SAVE FOR LATERS SUBMIT ANSWER

Explanation / Answer

TURNEY COMPANY Production Budget For the year ending December 31,2017 Product HD - 240 Qtr-1 Qtr-2 Qtr-3 Qtr-4 Year Expexted unit sales 5100 7490 8330 10350 Add: Desired ending finished goods unit 2996 3332 4140 2550 Total required units 8096 10822 12470 12900 Less: beginning finished goods units 2040 2996 3332 4140 Required production unit 6056 7826 9138 8760 31780 *Ending inventory in Qtr-4 = 5100*125/100*40/100 = 2550

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