Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2020 sales forecast is as follows. HD-240 Quarter 1 2 3 4 5,400 7,430 8,450 10,230 The January 1, 2020, inventory of HD-240 is 2,160 units. Management desires an ending inventory each quarter equal to 40% of the next quarter's sales. Sales in the f 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.

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2020 sales forecast is as follows.
Quarter
1
2
3
4
HD-240
5,400
7,430
8,450
10,230
The January 1, 2020, inventory of HD-240 is 2,160 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 produces and sells automobile batteries, the heavy-duty HD-240. The 2020 sales forecast is as follows. Quarter 1 2 3 4 HD-240 5,400 7,430 8,450 10,230 The January 1, 2020, inventory of HD-240 is 2,160 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.
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