Pletcher Company produces and sell automobile batteries, the heavy-duty HD-24. The 2011 sales forecast is as follows.
Quarter HD-240
1 5,000
2 7,000
3 8,000
4 10,000
The January 1, 2011, inventory of DH-240is 2,500 units. Management desires an ending inventory each quarter equal to 50% 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 each quarter and in total for 2011.