Forrest Company manufactures phone chargers and has a policy that ending inventory should equal 20% of the next month's budgeted unit sales. October's ending inventory equals 98,000 units. November and December sales are budgeted to be 490,000 units and 430,000 units, respectively. Prepare the production budget for November. FORREST 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 November 490,000 86,000