Concord Company produces and sells automobile batteries, the heavy-duty HD-240. The 2022 sales forecast is as follows. Quarter 1 2 3 4 HD-240 4,300 6,020 6,880 8,600 The January 1, 2022, inventory of HD-240 is 1,720 units. Management desires an ending inventory each quarter equal to 40% of the next quarter's sales. Sales in the first quarter of 2023 are expected to be 25% higher than sales in the same quarter in 2022. Prepare quarterly production budgets for each quarter and in total for 2022.

Concord Company produces and sells automobile batteries, the heavy-duty HD-240. The 2022 sales forecast is as follows. Quarter 1 2 3 4 HD-240 4,300 6,020 6,880 8,600 The January 1, 2022, inventory of HD-240 is 1,720 units. Management desires an ending inventory each quarter equal to 40% of the next quarter's sales. Sales in the first quarter of 2023 are expected to be 25% higher than sales in the same quarter in 2022. Prepare quarterly production budgets for each quarter and in total for 2022.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

100%

CONCORD COMPANY
Production Budget
Product HD-240
Quarter
3
1
4
CONCORD COMPANY
Production Budget
S
Product HD-240
2
g
Quarter
Year

Concord Company produces and sells automobile
batteries, the heavy-duty HD-240. The 2022 sales
forecast is as follows.
Quarter
1
2
3
4
HD-240
4,300
6,020
6,880
8,600
The January 1, 2022, inventory of HD-240
is 1,720 units. Management desires an ending
inventory each quarter equal to 40% of the next
quarter's sales. Sales in the first quarter of 2023 are
expected to be 25% higher than sales in the same
quarter in 2022.
Prepare quarterly production budgets for each
quarter and in total for 2022.

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