Turney company produces and sells


Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2020 forecast sales is as follows

Quarter HD-240

1 5,000

2 7,000

3 8,000

4 10,000

On January 1st, 2020, inventory of HD-240 is 2,000 units. Management desires an ending inventory each quarter equal to 40% of the next quarter 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.



Leave a Comment