Production Budget [LO3]

Crystal Telecom has budgeted the sales of its innovative mobile phone over the next four months as follows:

The company is now in the process of preparing a production budget for the third quarter. Past experience has shown that end-of-month finished goods inventories must equal 10% of the next month’s sales. The inventory at the end of June was 3,000 units.
Required:
Prepare a production budget for the third quarter showing the number of units to be produced each month and for the quarter in total.

Transcribed Image Text:

July.... August. September. Sales in Units 30,000 45,000 60,000 October... 50,000