QS $22-7($Algo$)$ Manufacturing: Production budget LO P$1$

Atlantic Surf manufactures surfboards. The company's budgeted sales units for the next three months is shown below. Company policy is to maintain finished goods inventory equal $($in units$)$ to $40\%$ of the next month's unit sales. As of June $30,$ the company has $1,720$ finished surfboards in inventory.

$\backslash$table$[[$Budgeted sales units,July,August,September$]]$

Prepare the production budget for the months of July and August.

$\backslash$table$[[$ATLANTIC SURF$],[$Production Budget,,$],[$Budgeted sales units,July,August$],[$Add: Desired ending inventory,$4,300,7,400],[$Next period budgeted sales units,,$],[$Ratio of inventory to future sales,$7,400,2,700],[$Desired ending inventory units,$40\%,40\%$