Tyler Co. predicts the following unit sales for the next four months: April, 3,600 units; May, 4,800 units; June, 6,500 units; and July, 2,900 units. The companys policy is to maintain finished goods inventory equal to 30% of the next months sales. At the end of March, the company had 500 finished units on hand.

Prepare a production budget for each of the months of April, May, and June.

May June Tyler Co. Production Budget April, May and June April Next month's budgeted sales (units) Ratio of inventory to future sales % Required units of available production Add: Budgeted sales (units) Required units of available production Less: Beginning inventory (units) Units to be produced % %