Bunnings Ltd has budgeted the following unit sales:

2018

2019

Quarter

Units

Quarter

Units

1

70,000

1

60000

2

30,000

3

50,000

4

90,000

The finished goods inventory on hand on 31 December 2017 was 7,000 units. It is the company's policy to maintain a finished goods inventory at the end of each quarter equal to 10% of the next quarter's anticipated sales.

Required:

production budget for 2018.

Bunnings LTD

Production Budget

for the year ended 31 December 2018

Quarter

1

2

3

4

Expected unit sales

Desired ending finished goods units

Total required units

Less: Beginning finished goods units

Required production units