Will thumbs up correct answers, thank you Turney Company produces and sells auto

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Will thumbs up correct answers, thank you

Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2017 sales forecast is as follows Quarter HD-240 5,000 2 7,000 8,000 4 10,000 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. Instructions Prepare quarterly production budgets for each quarter and in total for 2017. NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "7" .

Explanation / Answer

TURNEY COMPANY

Production Budget

For the year ending december 31,2017

TURNEY COMPANY

Production Budget

For the year ending december 31,2017

Product HD -240 1 2 3 4 year Expected unit sales 5000 7000 8000 10000 30000 Add:Desired ending finished goods unitd 2800   [7000*.40] 3200   [8000*.40] 4000   [10000*.40] 2500 [5000(1+.25)*.40] 12500 Total required units 7800 10200 12000 12500 42500 Less:Beginning Finished goods units (2000) (2800) (3200) (4000) (12000) Required production units 5800 7400 8800 8500 30500

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