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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 50% of the next month's unit sales. As of June 30, the company has 1,500 finished surfboards in inventory. Budgeted sales units July 3,000 August 7,000 September 4,500 Prepare the production budget for the months of July and August. Answer is not complete. ATLANTIC SURF Production Budget July August Budgeted sales units 3,500 1,500 Budgeted sales units 3,000% 7,000% Desired ending inventory units Total required units 3,500 1,500 Less: Beginning inventory units 1,500 4,500 x Units to be produced 2,000 3,000

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