Noel enterprises has budgeted sales in units for the next five months as follows:

January6800 units

February5400 units

March7200 units

April 4600 units

May3800 units

The company needs to prepare production budget for the first quarter of the year.

Experience has shown that the ending inventory for each month must be equal to 10% of the next months sales in units. The inventory on December 31 contained 400 units.

1. What should the opening in units be for April?

2. What is the desired ending inventory for April?

3. Provide the following for the first calendar quarter?

Total Sales

Beginning inventory

Ending inventory

Total production