Refer to Cornerstone Exercise 8.1, through Requirement 1. FlashKick requires ending inventory of product to equal 20 percent of the next month€™s unit sales. Beginning inventory in January was 3,100 practice soccer balls and 400 match soccer balls.

In exercise FlashKick Company manufactures and sells soccer balls for teams of children in elementary and high school. FlashKick€™s best-selling lines are the practice ball line (durable soccer balls for training and practice) and the match ball line (high-performance soccer balls used in games). In the first four months of next year, FlashKick expects to sell the following:

Required:
1. Construct a production budget for each of the two product lines for FlashKick Company for the first three months of the coming year.
2. What if FlashKick wanted a production budget for the two product lines for the month of April? What additional information would you need to prepare this budget?

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Practice Balls Match Balls Units Units January February March April 50,000 58,000 80,000 100,000 Selling Price %8.75 $8.75 $8.75 %8.75 7,000 7,500 13,000 18,000 Selling Price $16.00 $16.00 $16.00 $16.00