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Hospitable Co. provides the following sales forecast for the next four months: Sales (units) April May June July 630 710 660 660 The company wants
Hospitable Co. provides the following sales forecast for the next four months: Sales (units) April May June July 630 710 660 660 The company wants to end each month with ending finished goods inventory equal to 20% of next month's sales. Finished goods inventory on April 1 is 126 units. Assume July's budgeted production is 670 units. Prepare a production budget for the months of April, May, and June. HOSPITABLE CO. May June 660 660 Production Budget For April, May, and June April Next month's budgeted sales (units) 710 Ratio of inventory to future sales 20% Budgeted ending inventory (units) Budgeted unit sales for month Required units of available production Budgeted beginning inventory (units) Units to be produced
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