C7Q3

Blue Wave Co. predicts the following unit sales for the coming four months: September, 3,600 units: October, 4,600 units; November 6,000 units; and December, 8,500 units. The company's policy is to maintain finished goods inventory equal to 50% of the next month's sales. At the end of August, the company had 1,800 finished units on hand. Prepare a production budget for each of the months of September, October, and November Blue Wave Co. Production Budget September, October and November September October Next month's budgeted sales (units) % November % Units to be produced