Mac Glow Cosmetics International Company manufactures and distributes lipsticks all over the world. To keep production and sales moving smoothly, the company has the following inventory requirements:

a. The finished goods inventory on hand at the end of each month must be equal to 2,000 units plus 25% of the next month’s sales. The finished goods inventory on July 31 is budgeted to be 5,000 units.

b. The company maintains no work in process inventories.

A sales budget for the last six months of the year follows.

Budgeted Unit         Sales

July...........             10,000 

August......             15,000

September             22,000

October....             20,000

November             18,200

December             15,800

Required: 

Prepare a production budget for the month of October.