Exercise 20-5 (Algo) Manufacturing: Production budget LO P1 Tyler Company budgets the following unit sales for the next four months: April, 3,900 units; May, 5,000 units; June, 6,100 units; and July, 2,400 units. The company's policy is to maintain finished goods inventory equal to 30% of the next month's unit sales. At the end of March, the company had 1,170 finished units in inventory. Prepare a production budget for each of the months of April, May, and June. TYLER 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 April 3,900 May 5,000 June 6,100 30% 30 % 30 %