Fawzi Production is beginning the budgeting process for 2014. The sales forecast for the first three months of 2014 in units is: January 10,000; February 14,000; March 12,000. The company desires to have 10% of the next month’s anticipated unit sales in inventory at the end of a month. December’s ending inventory reflects this policy.

April’s sales are budgeted at 15,000 units. Prepare a production budget for Fawzi Production for February.