le batteries, the heavy-duty HD-240. The 2022 sales forecast is as follow Quarter HD-240 1 5,000 2 7,000 3 8,000 4 10,000 The January 1, 2022, inventory of HD-240 is 2,000 units. Management desires an ending inventory each quarter equal to 40% of the nex quarter's sales. Sales in the first quarter of 2023 are expected to be 25% higher than sales in the same quarter in 2022. Instructions 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
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E9.4 (LO 2), AP Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2022 sales forecast is as follows.
Quarter HD-240
1
5,000
7,000
8,000
10,000
The January 1, 2022, 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 2023 are expected to be 25% higher than sales in the same quarter in 2022.
Instructions
23
3
4
Prepare quarterly production budgets for each quarter and in total for 2022.
Transcribed Image Text:E9.4 (LO 2), AP Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2022 sales forecast is as follows. Quarter HD-240 1 5,000 7,000 8,000 10,000 The January 1, 2022, 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 2023 are expected to be 25% higher than sales in the same quarter in 2022. Instructions 23 3 4 Prepare quarterly production budgets for each quarter and in total for 2022.
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