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1 Blue Wave Co. predicts the following unit sales for the coming four months: September, 3,100 units; October, 4.200 units; November 6,900 units; and December,

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1 Blue Wave Co. predicts the following unit sales for the coming four months: September, 3,100 units; October, 4.200 units; November 6,900 units; and December, 8,500 units. The company's policy is to maintain finished goods inventory equal to 60% of the next month's sales. At the end of August, the company had 2,700 finished units on hand. Prepare a production budget for each of the months of September, October, and November ook int November rint Blue Wave Co. Production Budget September October and November September October Next month's budgeted sales (units) Ratio of inventory to future sales 60% 60% Budgeted ending inventory (units) Add: Budgeted sales (units) Required units to be produced 0 0 Less: Beginning inventory (units) Units to be produced 0 60% rences 0 0

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