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Careto Inc. produces a variety of supplies for hospitals and clinics. Among them is a roll of gauze. The sales budget for the first


Careto Inc. produces a variety of supplies for hospitals and clinics. Among them is a roll of gauze. The sales budget for the first four months of the year follows. Unit Sales January 100,000 February 120,000 March 110,000 April 100,000 Dollar Sales $50,000 60,000 55,000 50,000 Company policy requires that ending inventories for each month be 15 percent of next month's sales. At the beginning of January, the inventory of gauze is 9,000 rolls. Required: Prepare a production budget for the first quarter of the year. Show the number of units that should be produced each month as well as for the quarter in total.

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