Crane Company produces and sells automobile batteries, the heavy-duty HD-240. The 2022 sales forecast is as follows. Quarter HD-240 1 2 3 4 6,300 8,820 10,080 12,600 The January 1, 2022, inventory of HD-240 is 2,520 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.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Crane Company produces and sells automobile batteries, the heavy-duty HD-240. The 2022 sales forecast is as follows.
Quarter HD-240
1
2
3
4
6,300
8,820
10,080
12,600
The January 1, 2022, inventory of HD-240 is 2,520 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.
Transcribed Image Text:Crane Company produces and sells automobile batteries, the heavy-duty HD-240. The 2022 sales forecast is as follows. Quarter HD-240 1 2 3 4 6,300 8,820 10,080 12,600 The January 1, 2022, inventory of HD-240 is 2,520 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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