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.