Bredder Supply Corporation manufactures and sells cotton gauze. Expected sales of gauze (in boxes) for upcoming months are as follows:

June	35,000
July	39,000
August	41,000
September	37,000
October	34,000
November	33,000
December	36,000

Management likes to maintain a finished goods inventory equal to 20% of the next month's estimated sales. Required: Prepare the company's production budget for the third quarter of this year (the months of July, August and September). Include a column for each month and a total column for the entire quarter.

Solution (Please fill in the missing information):

	July	Aug.	Sept.	Total
Expected sales	39,000	41,000	37,000	117,000
Add desired ending inventory of finished goods (20% next months sales)
Total needs				123,800
Less beginning inventory of finished goods (20% of current months sales)
Units to be produced