The january 1 2012 inventory of hd-240 is 2500 units., Ask an Expert

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Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2012 sales budget is as follows.

Quarter HD-240
1 5,000
2 7,000
3 8,000
4 10,000

The January 1, 2012, inventory of HD-240 is 2,500 units. Management desires an ending inventory each quarter equal to 50% of the next quarter's sales. Sales in the first quarter of 2013 are expected to be 30% higher than sales in the same quarter in 2012.

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