Paulina Company produces and sells automobile batteries, the heavy-duty HD-240. The 2012 sales budget is as follows.

Quarter          HD-240
    1                  5,000
    2                  7,000
    3                  8,000
    4                10,000

The January 1, 2012, 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 fi rst quarter of 2013 are expected to be 30% higher than sales in the same quarter in 2012.
Instructions
Prepare quarterly production budgets for each quarter and in total for 2012.