Ramos Co. provides the following sales forecast and production budget for the next four months: The company plans for finished goods inventory of 230 units at the end of June. In addition, each finished unit requires 5 pounds of direct materials and the company wants to end each month with direct materials inventory equal to 30% of next months production needs. Beginning direct materials inventory for April was 825 pounds. Direct materials cost $2 per pound. Each finished unit requires 0.20 hours of direct labor at the rate of $10 per hour. The company budgets variable overhead at the rate of $14 per direct labor hour and budgets fixed overhead of $9,100 per month.

Blue Wave Co. predicts the following unit sales for the coming four months: September, 3,900 units; October, 4,500 units; November, 6,400 units; and December, 8,000 units. The companys policy is to maintain finished goods inventory equal to 60% of the next months sales. At the end of August, the company had 2,000 finished units on hand.

Prepare a production budget for each of the months of September, October, and November.

Sales (units) Budgeted production (units) AprilMay 690 680 610 550 JuneJuly 640 650 710 650