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Blue Wave Co. predicts the following unit sales for the coming four months: September, 3,900 units;...

Blue Wave Co. predicts the following unit sales for the coming four months: September, 3,900 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 60% of the next month’s sales. At the end of August, the company had 3,100 finished units on hand.

Prepare a production budget for each of the months of September, October, and November.
Blue Wave Co.
Production Budget
September, October and November
September October November
Next month’s budgeted sales (units)
% % %
Units to be produced
business   accounting   
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Blue Wave Co Production Budget September, October and November September October Next Months budgeted sales (Units) 4500 690

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