Nestl SA needs to prepare a production budget for the next quarter. The following information is available: Expected Sales: 50,000 units Desired Ending Inventory: 10,000

Nestlé SA needs to prepare a production budget for the next quarter. The following information is available:

• Expected Sales: 50,000 units
• Desired Ending Inventory: 10,000 units
• Beginning Inventory: 5,000 units

Required:

1. Prepare the production budget.
2. Determine the number of units to be produced.
3. Calculate the raw materials required if each unit requires 2 lbs of material.
4. Assess the impact of changes in desired ending inventory on production planning.