Exercise 21-4
Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2017 sales forecast is as follows.
Quarter |
HD-240 |
|
1 | 5,200 | |
2 | 7,220 | |
3 | 8,280 | |
4 | 10,180 |
The January 1, 2017, inventory of HD-240 is 2,080 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.
Prepare quarterly production budgets for each quarter and in total
for 2017.
TURNEY COMPANY Production Budget For the Quarter Ended December 31, 2017For the Year Ending December 31, 2017For the Month Ended December 31, 2017 |
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Product HD-240 |
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Quarter | ||||||||||
1 |
2 |
3 |
4 |
|
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Direct Materials PurchasesTotal Materials RequiredBeginning Direct MaterialsDesired Ending Finished Goods UnitExpected Unit SalesDesired Ending Direct MaterialsRequired Production UnitsBeginning Finished Goods UnitTotal Required UnitsDirect Materials Per Unit |
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AddLess :Desired Ending Direct MaterialsExpected Unit SalesDesired Ending Finished Goods UnitDirect Materials PurchasesRequired Production UnitsDirect Materials Per UnitBeginning Direct MaterialsTotal Materials RequiredTotal Required UnitsBeginning Finished Goods Unit |
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Desired Ending Direct MaterialsBeginning Finished Goods UnitDesired Ending Finished Goods UnitTotal Materials RequiredExpected Unit SalesBeginning Direct MaterialsDirect Materials PurchasesDirect Materials Per UnitRequired Production UnitsTotal Required Units |
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AddLess :Beginning Direct MaterialsDirect Materials PurchasesExpected Unit SalesDesired Ending Direct MaterialsTotal Materials RequiredBeginning Finished Goods UnitTotal Required UnitsRequired Production UnitsDesired Ending Finished Goods UnitDirect Materials Per Unit |
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Beginning Direct MaterialsDirect Materials Per UnitTotal Materials RequiredBeginning Finished Goods UnitDirect Materials PurchasesExpected Unit SalesRequired Production UnitsTotal Required UnitsDesired Ending Direct MaterialsDesired Ending Finished Goods Unit |
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Exercise 21-4 Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2017 sales forecast...
Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2017 sales forecast is as follows. Quarter HD-240 1 5,200 2 7,240 3 8,360 4 10,310 The January 1, 2017, inventory of HD-240 is 2,080 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. Prepare quarterly production budgets for each quarter...
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Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2020 sales forecast is as follows. Quarter HD-240 1 5,100 2 7,330 3 8,220 4 10,240 The January 1, 2020, inventory of HD-240 is 2,040 units. Management desires an ending inventory each quarter equal to 40% of the next quarter’s sales. Sales in the first quarter of 2021 are expected to be 25% higher than sales in the same quarter in 2020. Prepare quarterly production budgets for each quarter...
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