Question

Your answer is partially correct. Try again. Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2020 sales forecast is as follows. Quarter HD-240 5,100 7,500 8,400 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 and in total for 2020.
Need help in few areas in red.

Answer 1

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and format. For detailed answer refer to the supporting sheet.

Answer Turney Company Production Budget For the year ended December 31, 2020 Production H 240 Quarter ter 5100 9 Expected Unit sales 10 Add Desired ending Finished goods units 11 Total Required Units 12 :ess Beginning Finished goods units 13 Required Production Units 3000 8100 2040 6060 7500 3360 10860 3000 7860 8400 4096 12496 3360 9136 10240 2550 12790 4096 8694 31750 14 15 Note Previous quarter ending inventory will be next quarter beginning inventory that is quarter 1 ending inventory will be quarter 2 beginning inventory 27 18