Vaughn Company produces and sells automobile batteries, including the heavy-duty HD-240. The 2022 sales budget is as follows: Quarter Units of HD-240 1 2 3 4 6.500 6.700 Total 9,600 10,900 The January 1, 2022, inventory of HD-240 is 1,400 units. Management wants an ending inventory each quarter that is equal to 30% of the next quarter's sales. It expects sales in the first quarter of 2023 to be 20% higher than sales in the same quarter in 2022. Prepare quarterly production budgets for each quarter for 2022. VAUGHN COMPANY Production Budget-Product HD-240 For the Year Ending December 31, 2022 Quarter 2 3 Year

Vaughn Company produces and sells automobile batteries, including the heavy-duty HD-240. The 2022 sales budget is as follows: Quarter Units of HD-240 1 2 3 4 6.500 6.700 Total 9,600 10,900 The January 1, 2022, inventory of HD-240 is 1,400 units. Management wants an ending inventory each quarter that is equal to 30% of the next quarter's sales. It expects sales in the first quarter of 2023 to be 20% higher than sales in the same quarter in 2022. Prepare quarterly production budgets for each quarter for 2022. VAUGHN COMPANY Production Budget-Product HD-240 For the Year Ending December 31, 2022 Quarter 2 3 Year

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 10Q: If the sales forecast estimates that 50,000 units of product will be sold during the following year,...

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