Pletcher Company produces and sells automobile batteries, the heavy-duty HD-240. The 2011 sales budget is as follows.
Question:
Pletcher Company produces and sells automobile batteries, the heavy-duty HD-240. The 2011 sales budget is as follows.
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.
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 =...
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Related Book For
Managerial Accounting Tools for business decision making
ISBN: 978-0470477144
5th edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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