Cost Concepts Review Part II Production Budget Palmgren Company produces consumer products. The sales budget for four months of the year is presented below. Unit Sales Dollar Sales July 30,000 $990,000 August 34,000 1,062,600 September 39,500 1,200,000 October 36,000 1,141,300 Company policy requires that ending Inventories for each month be 25 percent of next month's sales. At the beginning of July, the beginning Inventory of consumer products met that policy. Required: > Prepare a production budget for the third quarter of the year. Show the number of units that should be produced each month as well as for the quarter in total. Palmgren Company Production Budget For the Third Quarter August September Total Unit sales 30,000 34,000 39,500 103,500 Desired ending inventory 8,500 9,875 9,000 9,000 Total needed 38,500 43,875 48,500 112,500 Less: Beginning inventory 8,500 X 8,500 9,875 July Units produced 35,375 38,625 Feedback Check My Work This production budget deals only with the units for the third quarter of the year. Unlts to be produced are calculated by considering beginning and ending (desired) Inventory amounts and unit sales. Check My Work Next Assignment Score: 31.54% All wc Email Instructor Save and Exit Submit Assignment for Grading