SE 4. 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 first quarter:

LO1 LO1 LO2 LO3 LO3 January February March Sales in units 5,000 4,000 6,000 Add desired units of ending finished goods inventory 2,000 ? ?

Desired total units 7,000 Less desired units of beginning finished goods inventory ? ? ?

Total production units 4,500 ? ?

Preparing an Operating Budget