Turney Company produces and sells automobile batteries

| October 3, 2018

Turney Company produces and sells automobile batteries, the heavy-duty HD-240.The 2014 sales forecast is as follows.Quarter HD-2401 ……………………. 5,0002 ……………………. 7,0003 ……………………. 8,0004 …………………… 10,000The January 1, 2014, 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 2015 are expected to be 25% higher than sales in the same quarter in 2014.InstructionsPrepare quarterly production budgets for each quarter and in total for 2014.

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