Question # 1

BULL Company has budgeted the following unit sales:

20172016

Quarter UnitsQuarter Units

1105,000190,000

260,000

375,000

4120,000

The finished goods inventory on hand on December 31, 2015was 21,000 units. It is the company's policy to maintain a finished goods inventory at the end of each quarter equal to 20% of the next quarter's anticipated sales.

Instructions

Prepare a production budget for 2016.