Question

Check my work Exercise 20-10 Manufacturing: Production budget LO P1 Blue Wave Co. predicts the following unit sales for the coming four months: September, 3,200 units; October, 4,500 units; November, 6,900 units; and December, 8,400 units. The company's policy is to maintain finished goods inventory equal to 70% of the next month's sales. At the end of August, the company had 2,600 finished units on hand. points Skipped Prepare a production budget for each of the months of September, October, and November. eBook Hint Blue Wave Co. Production Budget September, October and November September October Next month's budgeted sales (units) Print November References 0 0 Units to be produced 0 0 0

Answer 1

Production budget

	September	October	November
Next month's budgeted sales	4,500	6,900	8,400
Ending inventory percentage	70%	70%	70%
Ending inventory of finished goods	4,500 x 70% = 3,150	6,900 x 70% = 4,830	8,400 x 70% = 5,880
Sales units	3,200	4,500	6,900
Total inventory needs	6,350	9,330	12,780
Beginning inventory of finished goods	- 2,600	- 3,150	- 4,830
Units to be produced	3,750	6,180	7,950

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