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 23% of next month's sales in ending inventory. On January 1, it is expected that there will be 4,600 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.

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 23% of next month's sales in ending inventory. On January 1, it is expected that there will be 4,600 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 11,000 38,000 50,000 129,000 Desired ending inventory 8,740 11,500 11,730 Total needs 19,740 19,500 61,730 Less: Beginning inventory 4,600 8,740 11,500 Units to be produced 45,140 10,760 50,230