Question

Blossom Compary produces and sells automobile batteries, the heavy-duty HD-240. The 2022 sales forecast is as follows.

Quarter. HD-240
1. 4,000
2. 5,600
3. 6,400
4. 8,000
The January 1,2022, inventory of HD−240 is 1,600 units. Management desires an ending inventory each quarter equal to 40% of the next quarter's sales. Sales in the first quarter of 2023 are expected to be 25% higher than sales in the same quarter in 2022. Prepare quarterly production budgets for each quarter and in total for 2022.

Answer 1

To prepare quarterly production budgets for each quarter and in total for 2022, we need to follow the given information and calculations.

1. First Quarter (Q1):

- Sales in Q1 2022: We are not given the specific value for sales in Q1 2022.

- Sales in Q1 2023: Expected to be 25% higher than Q1 2022 sales.

- Ending inventory for Q1 2022: 40% of Q2 2022 sales (as per management's desired ending inventory).

- Beginning inventory for Q1 2022: Given as 1,600 units.

2. Second Quarter (Q2):

- Sales in Q2 2022: Not specified.

- Ending inventory for Q2 2022: 40% of Q3 2022 sales.

- Beginning inventory for Q2 2022: Ending inventory of Q1 2022.

3. Third Quarter (Q3):

- Sales in Q3 2022: Not specified.

- Ending inventory for Q3 2022: 40% of Q4 2022 sales.

- Beginning inventory for Q3 2022: Ending inventory of Q2 2022.

4. Fourth Quarter (Q4):

- Sales in Q4 2022: Not specified.

- Ending inventory for Q4 2022: Not specified.

To calculate the sales in Q1 2023, we need to know the sales in Q1 2022. Without that information, we cannot accurately determine the sales for each quarter or the total for 2022.

Therefore, we are unable to prepare the quarterly production budgets without the missing sales data.