Exercise 9-4 Your answer is partially correct. Try again. Turney Company produce

Question

Exercise 9-4 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 5,300 7,130 8,330 10,390 2 4 The January 1, 2017, inventory of HD-240 is 2,120 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 For the Year Ending December 31, 2017 Product HD-240 Quarter

Explanation / Answer

Production budget :

Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year Sales units 5300 7130 8330 10390 31150 Add: Desired ending inventory 2852 3332 4156 2650 2650 Total needs 8152 10462 12486 13040 33800 Less: Beginning inventory (2120) (2852) (3332) (4156) (2120) Prouduction units 6032 7610 9154 8884 31680

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