Acc349 Managerial Accounting: E9-4 Pletcher Company produces and sells automobile batteries

Acc349 Managerial Accounting

E9-4
Pletcher Company produces and sells automobile batteries, the heavy- duty HD-240. The 2011 sales forecast is as follows: Quarter HD-240 1 5,000 2 7,000 3 8,000 4 10,000. The January 1, 2011, inventory of HD-240 is 2,500 units. Management desire an ending inventory each quarter equal to 50% of the next quarter's sales. Sales in the first quarter of 2012 are expected to be 30% higher than sales in the same quarter in 2011.

Instructions:
Prepare a quarterly production budgets for each quarter and in total for 2011.
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