Q.1Noel Enterprises has budgeted sales in units for the next five months as follows:

January 6,800 units

February 5,400 units

March 7,200 units

April 4,600 units

May 3,800 units

The company needs to prepare production budget for the first quarter of the year.

Month

Sales

EI

BI

Production

Past experience has shown that the ending inventory for each month must be equal to10%of the next month's sales in units. The inventory on December 31 contained 400 units.

a..

What shouldthe opening inventory in units be for April?

b..

What is the total number of units to be produced in February?

c.

What is the desired ending inventory for April?For the quarter ending March 31?

d.Provide the following for the firstcalendarquarter?

Total sales

Beginning inventory

Ending inventory

Total production