Exercise 20-4 (Algo) Manufacturing: Production budget LO P1 Blue Wave Company budgets the following unit sales for the next four months: September, 3,400 units; October, 4,600 units November, 6,900 units; and December, 8,100 units. The company's policy is to maintain finished goods inventory equal to 50% of the next month's unit sales. At the end of August, the company had 1,700 finished units in inventory. Prepare a production budget for each of the months of September, October, and November, BLUE WAVE COMPANY Production Budget Budgeted sales units Add Desired ending inventory Next period budgeted sales units Ratio of inventory to future sales Desired ending inventory units Total required units Less Beginning inventory units Units to produce September October November