FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Crane Company produces and sells automobile batteries, the heavy-duty HD-240. The 2027 sales forecast is as follows.
Quarter HD-240
1
4,000
2
5,600
3
6,400
4
8,000
The January 1, 2027, inventory of HD-240 is 1,600 units. Management desires an ending inventory each quarter equal to 40% of the
next quarter's sales. Sales in the first quarter of 2028 are expected to be 25% higher than sales in the same quarter in 2027.
Prepare quarterly production budgets for each quarter and in total for 2027.
CRANE COMPANY
Production Budget
Product HD-240
Quarter
2
3
4
Year
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Transcribed Image Text:Crane Company produces and sells automobile batteries, the heavy-duty HD-240. The 2027 sales forecast is as follows. Quarter HD-240 1 4,000 2 5,600 3 6,400 4 8,000 The January 1, 2027, inventory of HD-240 is 1,600 units. Management desires an ending inventory each quarter equal to 40% of the next quarter's sales. Sales in the first quarter of 2028 are expected to be 25% higher than sales in the same quarter in 2027. Prepare quarterly production budgets for each quarter and in total for 2027. CRANE COMPANY Production Budget Product HD-240 Quarter 2 3 4 Year
Crane Company produces and sells automobile batteries, the heavy-duty HD-240. The 2027 sales forecast is as follows.
Quarter
HD-240
1
4,000
2
5,600
3
6,400
4
8,000
The January 1, 2027, inventory of HD-240 is 1,600 units. Management desires an ending inventory each quarter equal to 40% of the
next quarter's sales. Sales in the first quarter of 2028 are expected to be 25% higher than sales in the same quarter in 2027.
Prepare quarterly production budgets for each quarter and in total for 2027.
CRANE COMPANY
Production Budget
Product HD-240
1
2
Quarter
expand button
Transcribed Image Text:Crane Company produces and sells automobile batteries, the heavy-duty HD-240. The 2027 sales forecast is as follows. Quarter HD-240 1 4,000 2 5,600 3 6,400 4 8,000 The January 1, 2027, inventory of HD-240 is 1,600 units. Management desires an ending inventory each quarter equal to 40% of the next quarter's sales. Sales in the first quarter of 2028 are expected to be 25% higher than sales in the same quarter in 2027. Prepare quarterly production budgets for each quarter and in total for 2027. CRANE COMPANY Production Budget Product HD-240 1 2 Quarter
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