Acc561 Managerial Accounting: E9-4 Turney Company produces and sells automobile batteries

Important Reminder!!! There might be other versions of this problem - amounts and dates have been changed - so please make sure you review and compare this tutorial to the problem in your homework. Even with different amounts, format and way of solving the problem is still the same so pleases be guided accordingly.

Acc561 Managerial Accounting
E9-4
Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2008 sales budget is as follows.
Quarter HD-240
1 5,000
2 7,000
3 8,000
4 10,000
The January 1, 2008, 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 2009 are expected to be 30% higher than sales in the same quarter in 2008.

Prepare quarterly production budgets for each quarter and in total for 2008.
Powered by