Problem 3 Seved Production Direct Mtis Sales Direct Lbr Factory OH Selling Exp Admin Exp Cost of Income Budget Budget Budget Budget Budget Budget Budget Goods Sold Statement Requirement: Prepare the production budget for Cappelletti Inc.. Company policy calls for a given quarter's ending finished goods inventory to equal 70% of the next quarter's expected unit sales. The finished goods inventory at the end of the prior year is 630 units, which complies with the policy. Expected sales (in units) for the current year are: 900 (Quarter 1), 600 (Quarter 2), 800 (Quarter 3), and 800 (Quarter 4). Sales for the first quarter of the following year total 1,200 units. Show less Cappelletti Inc. Production Budget Total Fourth Otr. 1.200 Third Qtr. 800 70% 560 70% For the year ended December 31, 2018 First Otr. Second Qtr. 600 800 70% 70% 420 560 900 600 1.320 1.160 Next atr'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 840 800 1 360 800 1640 630+ Sales Budget Direct Mus Budget > ELE Next