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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 1,320 finished surfboards in inventory. July August September Budgeted sales units 3, 300 6, 100 3, 300 Prepare the production budget for the months of July and August. ATLANTIC SURF Production Budget July August Add: Desired ending inventory Budgeted sales units 0 0 Next period budgeted sales units Ratio of inventory to future salesAtlantic Surf manufactures surfboards. The company's budgeted sales units for the next three months is sho is to maintain finished goods inventory equal (in units) to 40% of the next month's unit sales. As of June 30, finished surfboards in inventory. July August September Budgeted sales units 3, 300 6 , 100 3 , 300 Prepare the production budget for the months of July and August. ATLANTIC SURF Production Budget July August Desired ending inventory units Total required units 0 Units to be produced
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