Refer to Cornerstone Exercise 8-1, through Requirement 1. StrikeSmart requires ending inventory of product to equal 20 percent of the next month’s unit sales. Beginning inventory in January was 10,000 practice soccer balls and 1,500 match soccer balls.

Required:

1. Construct a production budget for each of the two product lines for StrikeSmart Company for the first three months of the coming year.

2. What if StrikeSmart wanted a production budget for the two product lines for the month of April? What additional information would you need to prepare this budget?

LO1