Instructions Prepare quarterly production budgets for each quarter and in total for 2017.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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E21-4 Turney Company produces and sells automobile batteries, the heavy-duty HD-240.
The 2017 sales forecast is as follows.
HD-240
TE
Quarter
1
5,000
7,000
8,000
10,000
4
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.
Transcribed Image Text:E21-4 Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2017 sales forecast is as follows. HD-240 TE Quarter 1 5,000 7,000 8,000 10,000 4 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.
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