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Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2014 sales forecast is as follows.
Quarter-HD-240
1 5,400
2 7,290
3 8,170
4 10,300
The January 1, 2014, 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 2015 are expected to be 25% higher than sales in the same quarter in 2014.
Prepare quarterly production budgets for each quarter and in total for 2014.
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