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    Preparation of Production budget for the Pletcher Company

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    Pletcher Company produces and sells automobile batteries, the heavy-duty HD-240. The 2011 sales budget is as follows.
    Quarter HD-240
    1 4,600
    2 6,900
    3 7,590
    4 10,780
    The January 1, 2011, inventory of HD-240 is 2,510 units. Management desires an ending inventory each quarter equal to 60% 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.)

    PLETCHER COMPANY
    Production Budget
    For the Year Ending December 31, 2011
    Product HD-240
    Quarter
    1 2 3 4 Year
    Expected unit sales
    4600
    6,900
    7,590
    10,780

    Add: Desired end. finished goods units

    Total required units

    Less: Beg. finished goods units
    4140
    4554
    6468

    Required production units

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    https://brainmass.com/business/budgets/preparation-of-production-budget-for-the-pletcher-company-405364

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    Solution Summary

    Pletcher Company produces and sells automobile batteries, the heavy-duty HD-240. The 2011 sales budget is as follows.
    Quarter HD-240
    1 4,600
    2 6,900
    3 7,590
    4 10,780
    The January 1, 2011, inventory of HD-240 is 2,510 units. Management desires an ending inventory each quarter equal to 60% 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.)

    PLETCHER COMPANY
    Production Budget
    For the Year Ending December 31, 2011
    Product HD-240
    Quarter
    1 2 3 4 Year
    Expected unit sales
    4600
    6,900
    7,590
    10,780

    Add: Desired end. finished goods units

    Total required units

    Less: Beg. finished goods units

    4140
    4554
    6468

    Required production units

    $2.19

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