Production Budget Liang Company produces wheelbarrows. The unit sales for selected months of the year are as follows: April May June July Unit Sales 103,500 126,500 115,000 138,000 Company policy requires that ending inventories for each month be 20% of next month's sales. However, at the beginning of April, due to greater sales in March than anticipated, the beginning inventory of wheelbarrows is only 12,000. 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. Liang Company Production Budget For the Second Quarter Line Item Description April May June Total Sales 103,500 126,500 115,000 345,000 Desired ending inventory 25,300 23,000 27,600 75,900 Total needs 128,800 149,500 142,600 Less: Beginning inventory 12,000 25,300 23,000 60,300 X Units produced 116,800 124,200 119,600