Production Budget

Palmgren Company produces consumer products. The sales budget for four months of the year is presented below.

	Unit Sales	Dollar Sales
July	30,000	$980,000
August	34,500	1,064,800
September	39,500	1,197,000
October	36,000	1,143,700

Company policy requires that ending inventories for each month be 25 percent of next months sales. At the beginning of July, the beginning inventory of consumer products met that policy.

Required: Prepare a production budget for the third quarter of the year. Show the number of units that should be produced each month as well as for the quarter in total. Palmgren Company Production Budget For the Third Quarter July August September Total Unit sales 30,000 34,500 39,500 104,000 Desired ending inventory Total needed Less: Beginning inventory Units produced