QS 22-3, QS 22-5 and QS 22-7 3 10 points eBook Hint Saved Help Save & Exit 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 1,760 finished surfboards in inventory. Budgeted sales units July 4,400 August 6,800 September 2,900 Prepare the production budget for the months of July and August. ATLANTIC SURF Production Budget July August 4,400 6,800 Budgeted sales units Add: Desired ending inventory References Next period budgeted sales units 2,640 4,080 Ratio of inventory to future sales 40% 40% Desired ending inventory units 1,056 1,632 Total required units 5,456 8,432 Less: Beginning inventory units 1,760 5,040 Units to be produced 4,400 6,800 Check my