QS 20-8 (Algo) Manufacturing: Production budget LO P1 Forrest Company manufactures phone chargers and has a policy that ending inventory should equal 10% of the next month's budgeted unit sales. October's ending inventory equals 43.000 units. November and December sales are budgeted to be 430,000 units and 370,000 units, respectively Prepare the production budget for November. FORREST COMPANY Production Budget November Budgeted sales units Total required units Less: Beginning inventory units Units to produce Electro Company manufactures transmissions for electric cars, Management reports ending finished goods Inventory for the first quarter at 130,200 units. The following unit sales are budgeted during the rest of the year second quarter, 434,000 units; third quarte 497,000 units, and fourth quarter, 395,500 units. Company policy calls for the ending finished goods inventory of a quarter to equal 30% of the next quarter's budgeted unit sales. Prepare a production budget for both the second and third quarters that shows the number of transmissions to manufacture, ELECTRO COMPANY Production Budget Second Quarter Third Quarter Next period budgeted sales units Units to produce