xercise 21-4 urney Company produces and sells automobile batteries, the heavy-du
ID: 2390739 • Letter: X
Question
xercise 21-4 urney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2014 sales forecast is as follows 5,200 7,120 8,480 10,190 endng nventory each quarter equal to 40% of the next orter's sales. Sales n e int quarter of 201, n es ed- The January 1 2014 r ventory o H 240 s2 08 unts. Management desres 25% higher than sales in the same quarter in 2014. Prepare quarterly production budgets for each quarter and in total for 2014 Production Budget For the Year Ending December 31, 2014 Product HD 240 10190 2600 12790 120 200 2848 048 2080 Expected Unt Sales 392 10512 4076 4 Desired Ending ished Goods Unt Totel Reqgured Units LessBeginning Finshed Goods Un 12556Explanation / Answer
TURNEY COMPANY Production Budget For the Year Ending December 31, 2014 Product HD-240 Quarter 1 2 3 4 Year Expected unit sales 5200 7120 8480 10190 30990 Add: Desired ending finished goods unit 2848 3392 4076 2600 2600 Total required units 8048 10512 12556 12790 33590 Less: Beginning finished goods unit 2080 2848 3392 4076 2080 Required production units 5968 7664 9164 8714 31510
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