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E9-4 Turney Company produces

Price: $1.99


Turney Company produces and sells automobile batteries, the heavy-duty HD-240.
The 2014 sales forecast is as follows.


 Quarter  HD-240
1 5,000
2 7,000
3 8,000
4 10,000

The 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.

Instructions
Prepare quarterly production budgets for each quarter and in total for 2014.

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