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E21-4 Turney Company produces and sells automobile batteries, the heavy‐duty HD‐240. The 2017 sales forecast is as follows. Quarter     HD‐240 1     5,000 2     7,000 3     8,000 4     10,000 The January 1, 2017, inventory of HD‐240 is 2,000 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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