QS 20-7 (Algo) Manufacturing: Production budget LO P1 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 30% of the next month's unit sales. As of June 30, the company has 10 finished surfboards in inventory July August September Budgeted sales units 3,900 5,600 3,400 Prepare the production budget for the months of July and August ATLANTIC SURF Production Budget July th August 5,600 Budgeted sales units Add: Desired ending inventory Next period budgeted sales units Ratio of inventory to future sales Desired ending inventory units Total inquired units 30% 30% 3.900 5.600