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A sales budget is given below for one of the products manufactured by the Key Co.: January February March April May June 20,000 units 35,000

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A sales budget is given below for one of the products manufactured by the Key Co.: January February March April May June 20,000 units 35,000 units 60,000 units 40,000 units 30,000 units 25,000 units The inventory of finished goods at the end of each month should equal 10% of the next month's sales. However, on December 31 the finished goods inventory totaled only 1,000 units. Each unit of product requires two specialized electrical switches. Since the production of these specialized switches by Key's suppliers is sometimes irregular, the company has a policy of maintaining an ending inventory at the end of each month equal to 25% of the next month's production needs. This requirement had been met on January 1 of the current year. REQUIRED: Prepare a production budget for the first four months of the year

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