3. Given the following sales numbers from a sales budget, complete the production budget for the first and second quarter.

Assume the company likes to keep on hand an ending inventory at the end of each quarter equal to 30 percent of the next quarters sales. The beginning inventory balance at the beginning of the first quarter is 300 units.

Year One

1^st Qtr. 2^nd Qtr. 3^rd Qtr.

Budgeted unit sales 1,000 2,000 4,000

Add: desired ending inventory

Subtotal

Less: units in beginning finished

goods inventory

Production in units