Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2020 sales forecast is as follows. TI Quarter HD-240 1 5,100 2 7,270 3 8,110 4 10,450 The January 1, 2020, inventory of HD-240 is 2,040 units. Management desires an ending inventory each quarter equal to 40% of the next quarter's sales. Sales in the first quarter of 2021 are expected to be 25% higher than sales in the same quarter in 2020. Prepare quarterly production budgets for each quarter and in total for 2020.
Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2020 sales forecast is as follows. TI Quarter HD-240 1 5,100 2 7,270 3 8,110 4 10,450 The January 1, 2020, inventory of HD-240 is 2,040 units. Management desires an ending inventory each quarter equal to 40% of the next quarter's sales. Sales in the first quarter of 2021 are expected to be 25% higher than sales in the same quarter in 2020. Prepare quarterly production budgets for each quarter and in total for 2020.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2020 sales forecast is as follows.
Quarter
HD-240
1
5,100
2
7,270
3
8,110
4
10,450
The January 1, 2020, inventory of HD-240 is 2,040 units. Management desires an ending inventory each quarter equal to 40% of the
next quarter's sales. Sales in the first quarter of 2021 are expected to be 25% higher than sales in the same quarter in 2020.
Prepare quarterly production budgets for each quarter and in total for 2020.
Transcribed Image Text:TURNEY COMPANY
Production Budget
Product HD-240
Quarter
Year
Expected Unit Sales
5100
7100
8100
10100
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