Preparing a Production Budget

Patrick Inc. makes industrial solvents. In the first 4 months of the coming year, Patrick expects the following unit sales:

January	41,000
February	38,000
March	50,000
April	51,000

Patrick's policy is to have 25% of next month's sales in ending inventory. On January 1, it is expected that there will be 4,650 drums of solvent on hand.

Required:

Prepare a production budget for the first quarter of the year. Show the number of drums that should be produced each month as well as for the quarter in total. If required, round your answers to the nearest whole unit.

Patrick Inc. Production Budget For the Coming Quarter

	January	February	March	1st Quarter Total
Sales	fill in the blank 1	fill in the blank 2	fill in the blank 3	fill in the blank 4
Desired ending inventory	fill in the blank 5	fill in the blank 6	fill in the blank 7	fill in the blank 8
Total needs	fill in the blank 9	fill in the blank 10	fill in the blank 11	fill in the blank 12
Less: Beginning inventory	fill in the blank 13	fill in the blank 14	fill in the blank 15	fill in the blank 16
Units to be produced	fill in the blank 17	fill in the blank 18	fill in the blank 19	fill in the blank 20