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Tyler Company budgets the following unit sales for the next four months: April, 3,300 units; May, 4,600 units; June, 6,400 units; and July, 2,200 units.

Tyler Company budgets the following unit sales for the next four months: April, 3,300 units; May, 4,600 units; June, 6,400 units; and July, 2,200 units. The company's policy is to maintain finished goods inventory equal to 30% of the next month's unit sales. At the end of March, the company had 600 finished units in inventory. Prepare a production budget for each of the months of April, May, and June. TYLER COMPANY Production Budget April May June Budgeted sales units 3,300 4,600 6,400) Add: Desired ending inventory Next period budgeted sales units 4,600 6,400 Ratio of inventory to future sales 30% 30 % 30% Desired ending inventory units Total required units Less: Beginning inventory units Units to produce 600

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