TURNEY COMPANY_Production Budget

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Description

Turney Company produces and sells automobile
batteries, the heavy-duty HD-240. The 2012 sales budget is as follows.
Quarter
HD-240
1
5,000
2
7,000
3
8,000
4
10,000
The
January 1, 2012, inventory of HD-240 is 2,500 units. Management desires an
ending inventory each quarter equal to 50% of the next quarter’s sales. Sales
in the first quarter of 2013 are expected to be 30% higher than sales in the
same quarter in 2012.

Complete
quarterly production budgets for each quarter and in total for 2012.

TURNEY
COMPANY
Production
Budget
For
the Year Ending December 31, 2012
Product HD-240
Quarter
1 2 3 4 Year
Add:
Total required units
Less:
Required production units

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