Riverbed Company produces and sells automobile batteries, the heavy-duty HD-240. The 2017 sales forecast is as follows. Quarter HD-240 1 5,300 2 7,130 3 8,330 4 10,390 The January 1, 2017, inventory of HD-240 is 2,120 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. Prepare quarterly production budgets for each quarter and in total for 2017.
Riverbed Company produces and sells automobile batteries, the heavy-duty HD-240. The 2017 sales forecast is as follows. Quarter HD-240 1 5,300 2 7,130 3 8,330 4 10,390 The January 1, 2017, inventory of HD-240 is 2,120 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. Prepare quarterly production budgets for each quarter and in total for 2017.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question 15
Riverbed Company produces and sells automobile batteries, the heavy-duty HD-240. The 2017 sales forecast is as follows.
The January 1, 2017, inventory of HD-240 is 2,120 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.
Prepare quarterly production budgets for each quarter and in total for 2017.
|
Quarter
|
HD-240
|
|
| 1 | 5,300 | |
| 2 | 7,130 | |
| 3 | 8,330 | |
| 4 | 10,390 |
The January 1, 2017, inventory of HD-240 is 2,120 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.
Prepare quarterly production budgets for each quarter and in total for 2017.
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