PRINTER VERSION « BACK NEXT Exercise 23-4 Turney Company produces and sells auto

Question

PRINTER VERSION « BACK NEXT Exercise 23-4 Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2017 sales forecast is as follows. Quarter HD-240 5,500 7,140 8,200 10,270 The January 1, 2017, inventory of HD-240 is 2,200 units Management desires an ending inventory each quarter equal to 40% of the next quarter's sales. Sales in the first quarte 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 Quarter Year

Explanation / Answer

Production budget :

Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year Sales unit 5500 7140 8200 10270 31110 Add: Desired ending inventory 2856 3280 4108 2750 2750 Total needs 8356 10420 12308 13020 33860 Less: Beginning inventory (2200) (2856) (3280) (4108) (2200) Production units 6156 7564 9028 8912 31660

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.