Problem $7$

Powder King has budgeted sales of its popular snowboards for the next $4$ months as follows:

October

November

December

January

Sales in Units

$9,000$

$10,000$

$15,000$

$18,000$

The company is now in the process of preparing a production budget for the fourth quarter $($October$-$December$).$ Management has determined that end$-$ofmonth inventory levels need to be $20\%$ of the following month's sales. The inventory at the end of September was $1,800$ units.

Required:

Prepare a production budget for the fourth quarter. In your budget, show the number of units to be produced each month and for the quarter in total.