Prepare the production budget

Blue Wave Co. predicts the following unit sales for the coming four months: September, 4,000 units; October, 5,000 units; November, 7,000 units; and December, 7,600 units. The company's policy is to maintain finished goods inventory equal to 60% of the next month's sales. At the end of August, the company had 2,400 finished units on hand. Prepare a production budget for each of the months of September, October, and November. Blue Wave Co Production Budget September, October and November September October November Next month's budgeted sales (units) Units to be produced 0 0 0 Drop downs: Budget ending inventory (units) Ratio of inventory to feature sales Required units of available production Add: budgeted sales (units) Less: budgeted sales (units)