QS 7-16 Manufacturing: Production budget LO P1 Atlantic Surf manufactures surfboards. The company's sales budget for the next three months is shown below. In addition, 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 2.000 finished surfboards in inventory, which complies with the policy. Sales (in units) July August September 5,000 6,900 3,700 Prepare a production budget for the months of July and August ATLANTIC SURF Production Budget July and August July August Budgeted ending inventories July August Add Budgeted sales Required units of available production Less Actual or budgeted beginning inventories Units to be produced Forrest Company manufactures phone chargers and has a JIT policy that ending inventory must equal 10% of the next month's sales. It estimates that October's actual ending inventory will consist of 50,000 units. November and December sales are estimated to be 500,000 and 370,000 units, respectively. Compute the number of units to be produced that would appear on the company's production budget for the month of November FORREST COMPANY Production Budget For Month Ended November 30 Required units of available production Units to be produced Music World reports the following sales forecast August, $110,000, and September, $190,000. Cash sales are normally 50% of total sales and all credit sales are expected to be collected in the month following the date of sale. Prepare a schedule of cash receipts for September MUSIC WORLD Cash Receipts Budget For Month Ended September 30 September cash sales Collection of accounts receivable Total budgeted cash receipts