Diamond Toasters Production Budget

	You have been asked to prepare the production budget for Diamond Toasters.
	To keep production and sales moving smoothly, the company has the following
	inventory requirements:
	1. the finished goods inventory on hand at the end of each month must be equal
	to 24,000 units plus 20% of next month's sales. The finished goods inventory on
	March 31 is 28,000 units.
	2. The company maintains no work in process inventories
	The sales budget for Diamond Toasters over the next 4 months is:
		Budgeted Sales in Units
	April	32,000
	May	28,000
	June	34,000
	July	36,000
	A. Prepare a production budget for Diamond Toasters for April, May and June The problem is correct. You are asked to calculated the number of units of production for the month. To do that you complete the following data. Budgeted sales Add desired ending inventory Sum - Total Needed Less beginning inventory Required production The only item you must calculate is the desired ending inventory. Does that help?