Prepare the production budget for Ham Inc.. Company policy calls for a given quarters ending finished goods inventory to equal 50% of the next quarters expected unit sales. The finished goods inventory at the end of the prior year is 360 units, which complies with the policy. Expected sales (in units) for the current year are: 720 (Quarter 1), 480 (Quarter 2), 640 (Quarter 3), and 640 (Quarter 4). Sales for the first quarter of the following year total 960 units.

Sales Budget Production Budget Direct Mtls Budget Direct Lbr Budget Factory OH Budget Selling Exp Budget Admin Exp Budget Cost of Goods Sold Income Statement Requirement: Prepare the production budget for Ham Inc.. Company policy calls for a given quarter's ending finished goods inventory to equal 50% of the next quarter's expected unit sales. The finished goods inventory at the end of the prior year is 360 units, which complies with the policy. Expected sales (in units) for the current year are: 720 (Quarter 1), 480 (Quarter 2), 640 (Quarter 3), and 640 (Quarter 4). Sales for the first quarter of the following year total 960 units. Show less A Ham Inc. Production Budget Total For the year ended December 31, 2018 First Otr First Qtr. Second Qtr. 480 50% 50% 360 240 720 Third Qtr. 640 50% 3 20 Fourth Qtr. 6401 50% 320|| Next qtr's budgeted sales (units) Ratio of inventory to future sales Budgeted ending inventory (units) Budgeted sales (units) Required units of available production Budgeted beginning inventory (units) Units to be produced 360360 240 320