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Atlantic Surf manufactures surfboards. The company's budgeted sales units for the next three months is shown below. Company policy is to maintain finished goods inventory

Atlantic Surf manufactures surfboards. The company's budgeted sales units for the next three months is shown below. Company policy is to maintain finished goods inventory equal (in units) to 40% of the next month's unit sales. As of June 30, the company has 1,600 finished surfboards in inventory. Budgeted sales units July 4,000 August September 6,500 3,500 Prepare the production budget for the months of July and August. Budgeted sales units Add: Desired ending inventory Desired ending inventory units Total required units Units to be produced ATLANTIC SURF Production Budget July August 0 0

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