Exercise 20-10 Manufacturing: Production budget LO P1

Blue Wave Co. predicts the following unit sales for the coming four months: September, 3,000 units; October, 4,200 units; November, 6,400 units; and December, 8,300 units. The companys policy is to maintain finished goods inventory equal to 60% of the next months sales. At the end of August, the company had 2,400 finished units on hand. Prepare a production budget for each of the months of September, October, and November.