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Tyler Co. predicts the following unit sales for the next four months: April, 3,100 units; May, 4,500 units; June, 6,600 units; and July, 2,700
Tyler Co. predicts the following unit sales for the next four months: April, 3,100 units; May, 4,500 units; June, 6,600 units; and July, 2,700 units. The company's policy is to maintain finished goods Inventory equal to 40% of the next month's sales. At the end of March, the company had 600 finished units on hand. Prepare a production budget for each of the months of April, May, and June. Tyler Co. Production Budget April, May and June April May June 40 % 40 % 40 % Next month's budgeted sales (units) Ratio of inventory to future sales Budgeted ending inventory (units) Less: Budgeted sales (units) Units to be produced 0 0 0 0 0
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