#1. Alaric Supply Corporation manufactures and sells cotton gauze. Expected sales of gauze (in boxes) for upcoming months are as follows: June July August September October November December 38,000 32,000 40,000 33,000 36,000 37,000 39,000 Management likes to maintain an ending inventory equal to 20% of the next month's estimated sales. Required: Prepare the company's production budget for the third quarter of this year (the months of July, August and September) Units to be sold July 32,000 Aug 40,000 Sept. 33,000 Total 105,000 Add: Desired Ending Inventory 8000 Total needed 40000 6400 Less: Beginning Inventory Amount to be produced 33600