Unit Sales Dollar Sales July August September October 32,500 33,700 38,000 36,000 $975,000 1,061,550 1,197,000 1,141,200 Company policy requires that ending inventories for each month be 25 percent of next month's sales. At the beginning of July, the beginning inventory of consumer products met that policy. Required: Prepare a production budget for the third quarter of the year. Show the number of units that should be produced each month as well as for the quarter in total. Palmgren Company Production Budget For the Third Quarter July August September Total Unit sales 32,500 33,700 38,000 V 104,200 Desired ending inventory 8,425 9,500 9,000 26.925 x 40,925 43.2007 47,000 131,125 X Total needed Less: Beginning inventory 8,125 8,425 9.500 26,050 x Units produced 32.800 34,775 37.500 105.075