Isobel Law, the controller for Aberdeen Lock Company, is preparing a production budget for the year. The
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Isobel Law, the controller for Aberdeen Lock Company, is preparing a production budget for the year. The company's policy is to maintain a finished goods inventory equal to one-half of the following month's sales. Sales of 7,000 locks are budgeted for April. Complete the monthly production budget for the firstquarter:
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January by March 5,000 4,000 6,000 2,000 7,000 Sales in units Add desired units of ending finished goods inventory Desired toral units Less desired units of beginning finished goods inventory Total production units 4,500
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