Question - Pletcher Company produces and sells automobile batteries, the heavy-duty HD-240. The 2011 sales budget is as follows.
Quarter HD-240
1 4,700
2 7,390
3 7,690
4 10,040
The January 1, 2011, inventory of HD-240 is 2,300 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.
Prepare quarterly production budgets for each quarter and in total for 2011. (Enter all amounts as positive amounts and subtract where necessary.)