Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2017 sales forecast is as follows.

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

The January 1, 2017, inventory of HD-240 is 2,000 units. Management desires an ending inventory each quarter equal to 40% of the next quarter’s sales. Sales in the first quarter of 2018 are expected to be 25% higher than sales in the same quarter in 2017.

Instructions

Prepare quarterly production budgets for each quarter and in total for 2017.