QS 20-16 Manufacturing: Production budget LO P1

Atlantic Surf manufactures surfboards. The companys sales budget for the next three months is shown below. In addition, company policy is to maintain finished goods inventory equal (in units) to 50% of the next months unit sales. As of June 30, the company has 1,550 finished surfboards in inventory, which complies with the policy.

	July		August		September
Sales (in units)	3,100		7,300		3,600

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