Quarters for 2020 3 2 4 9,500 10,000 8,500 units. Management desires an ending inventory eac" first quarter of 2023 are expected to be 25% higher t er 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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Question 2
2022 sales forecast is as follows.
Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The
Quarters for 2020
1
6.000
8,500
9,500 10,000
Expected unit sales
The January 1, 2022, inventory of HD-240 is 3,500 units. Management desires an ending inventory each quarter
equal to 30% 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.
Required:
Prepare quarterly production budgets for each quarter and in total for 2022.
Transcribed Image Text:Question 2 2022 sales forecast is as follows. Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The Quarters for 2020 1 6.000 8,500 9,500 10,000 Expected unit sales The January 1, 2022, inventory of HD-240 is 3,500 units. Management desires an ending inventory each quarter equal to 30% 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. Required: Prepare quarterly production budgets for each quarter and in total for 2022.
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