Walla Walla produces a vitamin-enhanced dog food that is sold in Kansas. The company expects sales to be 12,800 bags in January, 14,500 bags in February, 19,700 bags in March, and 21,900 bags in April. There are 1,400 bags on hand at the start of January. Walla Walla desires to maintain monthly ending inventory equal to 15 percent of next months expected sales.

Prepare the production budget for Walla Walla for the months of January, February, and March.

Walla Walla

Production Budget

For the months of January, February, and March

January February March Quarter

Total neededUnit salesBeginning inventory of finished unitsDesired ending inventory of finished unitsUnits to be produced

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Desired ending inventory of finished unitsUnits to be producedBeginning inventory of finished unitsTotal neededUnit sales

Desired ending inventory of finished unitsBeginning inventory of finished unitsUnits to be producedUnit salesTotal needed

LessAdd

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Units to be producedUnit salesDesired ending inventory of finished unitsTotal neededBeginning inventory of finished units

Unit salesBeginning inventory of finished unitsUnits to be producedDesired ending inventory of finished unitsTotal needed