Turney Company produces and sells automobile batteries, the heavy-duty HD-240. T

Question

Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2014 sales forecast is as follows.

Quarter

HD-240

Quarter

HD-240

1 5,200 2 7,110 3 8,300 4 10,450 The January 1, 2014, inventory of HD-240 is 2,080 units. Management desires an ending inventory each quarter equal to 40% of the next quarter's sales. Sales in the first quarter of 2015 are expected to be 25% higher in the same quarter in 2014. Prepare quarterly production budgets for each quarter and in total for 2014 TURNEY COMPANY Production Budget the Year Ending December 31, 2014 Product HD-240 Quarter Year Expected Unit Sales 5200 7110 8300 10450 Add Desired Ending Finished Goods Unit 2844 Total Required Units 8044 Less : Beginning Finished Goods Unit Required Production Units Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

1 2 3 4 Year Expected Unit Sales 5200 7110 8300 10450 Add: Desired Ending Finished Goods Unit 2844 3320 4180 2600 Total Required Units 8044 10430 12480 13050 Less: Beginning Finished Goods Unit 2080 2844 3320 4180 Required Production Units 5964 7586 9160 8870 31580

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