Question 1 Turney Company produces and sells automobile batteries, the heavy-dut

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Question 1 Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2017 sales forecast is as follows. Quarter HD-240 5,100 7,270 8,110 10,450 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 4 Year LINK TO TEXT

Explanation / Answer

Turney Company     Production Budget                                      for the year 2017 1 2 3 4 Year 2018 Expected unit sales 5,100 7,270 8,110 10,450 6375 Add:ending inventory 2908 3244 4180 2550 total needs 8,008 10,514 12,290 13,000 less:opening inventory 2,040 2908 3244 4180 production required 5,968 7,606 9,046 8,820 31,440

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