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Blue Wave Company budgets the following unit sales for the next four months: September, 3,700 units; October, 4,200 units; November, 6,300 units; and December, 8,000
Blue Wave Company budgets the following unit sales for the next four months: September, 3,700 units; October, 4,200 units; November, 6,300 units; and December, 8,000 units. The company's policy is to maintain finished goods inventory equal to 60% of the next month's unit sales. At the end of August, the company had 2,220 finished units in inventory. Prepare a production budget for each of the months of September, October, and November. BLUE WAVE COMPANY Production Budget September October November Budgeted sales units Add: Desired ending inventory Next period budgeted sales units % % % Desired ending inventory units Total required units Units to produce
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