Explore BrainMass

Production budget

E24-2 Wayans Company produces and sells two types of automobile batteries, the heavy-duty HD-240 and the long-life LL-250. The 2005 sales budget for the two products is as follows.

Quarter HD-240 LL-250

1 5,000 10,000
2 7,000 18,000
3 8,000 20,000
4 10,000 35,000

The January 1, 2005, inventory of HD-240 and LL-250 units is 2,000 and 4,000, respectively. Management desires an ending inventory each quarter equal to 40% of the next quarter's sales. Sales in the first quarter of 2006 are expected to be 30% higher than sales in the same quarter in 2005. Prepare quarterly production budgets.

Prepare separate quarterly production budgets for each product by quarters for 2005.


Solution Summary

MS word file contains quarterly production budget for Wayans Company.