Company Policy requires that ending inventories for each month be 25% of next months sales. However, at the beginning of April, due to greater sales in March than anticipated, the beginning inventory of water pumps is only 21,000.

Production Budget Aqua-pro Inc. produces submersible water pumps for ponds and cisterns. The unit sales for selected months of the year are as follows: Unit Sales April 180,000 May 220,000 June 200,000 July 240,000 Prepare a production budget for the second quarter of the year. Show the number of units that should be produced each month as well as for the water in total Aqua pro Inc Production Budget For the Second Quarter April Sales May June Total Desired ending inventory Total needs Less: Beginning inventory Units produced