Budgeting E21-4 Turney Company produces and sells automobile batteries the heavyduty HD240. The 2017 sales forecast is as follows. Quarter HD240 1 5000 2 7000 3 8000 4 10000 The January 1 2017 inventory of HD240 is 2000 units. Management desires an ending inventory each quarter equal to 40% of the next quarter’s sales. Sales in the first quarter of 2018 are expected to be 25% higher than sales in the same quarter in 2017.
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