Exercise 22-10 Manufacturing: Production budget LO P1 Blue Wave Co. predicts the following unit sales for the coming four months: September, 3,800 units; October, 4,300 units; November, 6,700 units; and December, 8,000 units. The companys policy is to maintain finished goods inventory equal to 70% of the next months sales. At the end of August, the company had 2,600 finished units on hand. Prepare a production budget for each of the months of September, October, and November.

Exercise 22-10 Manufacturing: Production budget LO P1 Blue Wave Co. predicts the following unit sales for the coming four months: September, 3,800 units; October, 4,300 units; November, 6,700 units; and December, 8,000 units. The company's policy is to maintain finished goods inventory equal to 70% of the next month's sales. At the end of August, the company had 2,600 finished units on hand. Prepare a production budget for each of the months of September, October, and November. Blue Wave Co. November 8,000 70% Production Budget September, October and November September October Next month's budgeted sales (units) 4,300 6,700 Ratio of inventory to future sales 70 % 70% Budgeted ending inventory (units) Add: Budgeted sales (units) Required units to be produced 0 0 Less: Beginning inventory (units) Units to be produced 0 0 0