Production Budget

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

	Unit Sales	Dollar Sales
July	32,000	$980,000
August	34,000	1,062,800
September	40,500	1,197,000
October	36,500	1,144,800

Company policy requires that ending inventories for each month be 20 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
Total needed
Units produced