Question

Paige Company estimates that unit sales will be 10,900 in quarter 1, 12,200 in quarter 2, 14,200 in quarter 3, and 18,200 in quarter 4. Management desires to have an ending finished goods inventory equal to 25% of the next quarter’s expected unit sales.

Prepare a production budget by quarters for the first 6 months of 2020.

PAIGE COMPANY Production Budget choose the accounting periodFor the Quarter Ending June 30, 2020For the Six Months Ending June 30, 2020June 30, 2020 For the Six Months Ending June 30, 2020June 30, 2020For the Quarter Ending June 30, 2020
	Quarter
	1		2		Six Months
select an opening production budget itemExpected Unit SalesDirect Materials Per UnitTotal Required UnitsTotal Materials RequiredDirect Materials PurchasesDesired Ending Direct MaterialsBeginning Direct MaterialsDesired Ending Finished Goods InventoryRequired Production UnitsBeginning Finished Goods Inventory Beginning Finished Goods InventoryBeginning Direct MaterialsDesired Ending Direct MaterialsDesired Ending Finished Goods InventoryDirect Materials Per UnitDirect Materials PurchasesExpected Unit SalesRequired Production UnitsTotal Materials RequiredTotal Required Units	enter a number of units		enter a number of units
select between addition and deductionAddLess AddLess: select a production budget item Beginning Finished Goods InventoryTotal Materials RequiredRequired Production UnitsDirect Materials Per UnitExpected Unit SalesDesired Ending Direct MaterialsBeginning Direct MaterialsDesired Ending Finished Goods InventoryDirect Materials PurchasesTotal Required Units Beginning Finished Goods InventoryBeginning Direct MaterialsDesired Ending Direct MaterialsDesired Ending Finished Goods InventoryDirect Materials Per UnitDirect Materials PurchasesExpected Unit SalesRequired Production UnitsTotal Materials RequiredTotal Required Units	enter a number of units		enter a number of units
select a summarizing line for the first partBeginning Finished Goods InventoryDirect Materials Per UnitDirect Materials PurchasesTotal Required UnitsRequired Production UnitsDesired Ending Finished Goods InventoryTotal Materials RequiredDesired Ending Direct MaterialsExpected Unit SalesBeginning Direct Materials Beginning Finished Goods InventoryBeginning Direct MaterialsDesired Ending Direct MaterialsDesired Ending Finished Goods InventoryDirect Materials Per UnitDirect Materials PurchasesExpected Unit SalesRequired Production UnitsTotal Materials RequiredTotal Required Units	enter a total number of units for the first part		enter a total number of units for the first part
select between addition and deductionAddLess AddLess: select a production budget item Direct Materials Per UnitTotal Materials RequiredRequired Production UnitsTotal Required UnitsDesired Ending Finished Goods InventoryBeginning Direct MaterialsDirect Materials PurchasesBeginning Finished Goods InventoryExpected Unit SalesDesired Ending Direct Materials Beginning Finished Goods InventoryBeginning Direct MaterialsDesired Ending Direct MaterialsDesired Ending Finished Goods InventoryDirect Materials Per UnitDirect Materials PurchasesExpected Unit SalesRequired Production UnitsTotal Materials RequiredTotal Required Units	enter a number of units		enter a number of units
select a closing production budget itemDirect Materials PurchasesDirect Materials Per UnitDesired Ending Direct MaterialsExpected Unit SalesTotal Materials RequiredTotal Required UnitsRequired Production UnitsDesired Ending Finished Goods InventoryBeginning Finished Goods InventoryBeginning Direct Materials Beginning Finished Goods InventoryBeginning Direct MaterialsDesired Ending Direct MaterialsDesired Ending Finished Goods InventoryDirect Materials Per UnitDirect Materials PurchasesExpected Unit SalesRequired Production UnitsTotal Materials RequiredTotal Required Units	enter a total number of units		enter a total number of units		enter a total number of units

Answer 1

PAIGE COMPANY
Production Budget
For the Six Months Ending June 30, 2020
	Quarter
	1	2	Six Months
Expected Unit Sales	10900	12200
Add: Desired Ending Finished Goods Inventory	3050	3550
Total required units	13950	15750
Less: Beginning Finished Goods Inventory	2725	3050
Required production units	11225	12700	23925