Production Budget

Aqua-pro Inc. produces submersible water pumps for ponds and cisterns. The unit sales for selected months of the year are as follows:

	Unit Sales
April	189,000
May	231,000
June	210,000
July	252,000

Company policy requires that ending inventories for each month be 25% of next month's sales. However, at the beginning of April, due to greater sales in March than anticipated, the beginning inventory of water pumps is only 21,000.

Required:

Prepare a production budget for the second quarter of the year. Show the number of units that should be produced each month as well as for the quarter in total.

Aqua-pro Inc.
Production Budget
For the Second Quarter
	April	May	June	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 produced	fill in the blank 17	fill in the blank 18	fill in the blank 19	fill in the blank 20