A Sales budget is given below for one of the products manufactured by the Key Company.

January $21,000$ units

February $36,000$ units

March $61,000$ units

April $41,000$ units

May $31,000$ units

June $25,000$ units

The inventory of finished goods at the end of each month should equal $20\%$ of the next month sales. On Decemeber $31,$ the finished goods inventory totaled $4,000$ units.

Prepare a budget showing the required production each month for January, February, March, and April.

B$)$ Prentice Company is considering dropping one of its product lines. What costs of the product line would be relevant to this decision? what costs would be irrelevant?

Define the following terms: Joint costs, and split $-$ off point.