Prepare quarterly production budgets. E10.19 (LO 2) Excel Wayans Company produces and sells automobile batteries, including the heavy-duty HD-240. The 2022 sales budget is as follows: Quarter Units of HD-240 1 6,000 7,000 9,000 10,000 2 3 4 The January 1, 2022, inventory of HD-240 is 1,500 units. Management wants an ending inventory each quarter that is equal to 30% of the next quarter's sales. It expects sales in the first quarter of 2023 to be 20% higher than sales in the same quarter in 2022. Instructions Prepare quarterly production budgets for each quarter for 2022.
Prepare quarterly production budgets. E10.19 (LO 2) Excel Wayans Company produces and sells automobile batteries, including the heavy-duty HD-240. The 2022 sales budget is as follows: Quarter Units of HD-240 1 6,000 7,000 9,000 10,000 2 3 4 The January 1, 2022, inventory of HD-240 is 1,500 units. Management wants an ending inventory each quarter that is equal to 30% of the next quarter's sales. It expects sales in the first quarter of 2023 to be 20% higher than sales in the same quarter in 2022. Instructions Prepare quarterly production budgets for each quarter for 2022.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Prepare quarterly production budgets.
E10.19 (LO 2) Excel Wayans Company produces and sells automobile batteries,
including the heavy-duty HD-240. The 2022 sales budget is as follows:
Quarter Units of HD-240
1
6,000
7,000
9,000
10,000
2
3
4
The January 1, 2022, inventory of HD-240 is 1,500 units. Management wants an
ending inventory each quarter that is equal to 30% of the next quarter's sales. It
expects sales in the first quarter of 2023 to be 20% higher than sales in the same
quarter in 2022.
Instructions
Prepare quarterly production budgets for each quarter for 2022.
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