Garver Industries has budgeted the following unit sales:

The finished goods units on hand on December $31,2019,$ was $2,000$ units. Each unit requires $3$ pounds of raw materials that are estimated to cost an average of $$4$ per pound. It is the

company's policy to maintain a finished goods inventory at the end of each month equal to $20\%$ of next month's anticipated sales.

Instructions

For the first quarter of $2020,$ prepare a production budget.

GARVER INDUSTRIES

Production Budget

For the Quarter Ended March $31,2020$

January February March Total

Expected unit sales

Desired ending finished goods units

Total required units

Less: Beginning finished goods units

Required production units