4. Zahn Company budgets sales of 280 units in May and 540 units in June. Each months ending inventory should be 25% of the next months sales. The April 30 ending finished goods inventory is 70 units. Prepare the production budget for May.

ZAHN COMPANY
Production Budget
	May
Budgeted sales units	280
Add: Desired ending inventory
Desired ending inventory units	135
Total required units	415
Less: Beginning inventory units	(70)
Units to produce	345

5. Champ Incorporated budgets the following sales in units for the coming two months. Each months ending inventory of finished units should be 60% of the next months sales. The April 30 finished goods inventory is 132 units.

	May	June
Budgeted sales units	220	280

Prepare the production budget for May.

CHAMP, INCORPORATED
Production Budget
	May
Next period budgeted sales units
Ratio of inventory to future sales
Desired ending inventory units
Total required units
Less: Beginning inventory units
Units to produce