Pletcher Company produces and sells automobile batteries, the heavy-duty HD-240. The 2011 sales budget is as follows.

Question:

QuarterHD-240

1 .... 5,200

2 .... 7,490

3 .... 7,980

4 ....11,370

The January 1, 2011, inventory of HD-240 is 2,050 units. Management desires an ending inventory each quarter equal to 40% 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 quarterly production budgets for quarter and in total for 2011.

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...