Forrest Company manufactures phone chargers and has a JIT policy that ending inventory must equal 20% of the next months sales. It estimates that Octobers actual ending inventory will consist of 84,000 units. November and December sales are estimated to be 420,000 and 380,000 units, respectively. Compute the number of units to be produced that would appear on the companys production budget for the month of November.

Forrest Company manufactures phone chargers and has a JIT policy that ending inventory must equal 20% of the next month's sales. It estimates that October's actual ending inventory will consist of 84,000 units. November and December sales are estimated to be 420,000 and 380,000 units, respectively. Compute the number of units to be produced that would appear on the company's production budget for the month of November. Answer is complete but not entirely correct. FORREST COMPANY Production Budget For Month Ended November 30 Budgeted ending inventory units Budgeted sales for the month units Required units of available production Budgeted beginning inventory units Units to be produced 380,000 420,000 800,000 84,000 420,000