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Windsor Lock Company's controller is preparing a production budget for the year. The company's policy is to maintain a finished goods inventory equal to one-half
Windsor Lock Company's controller is preparing a production budget for the year. The company's policy is to maintain a finished goods inventory equal to one-half of the following month's sales. Sales of 5,000 locks are budgeted for April. Complete the monthly production budget for the first quarter:
January | February | March | |||
Sales in units | 5,000 | 4,000 | 6,000 | ||
Add desired units of ending finished goods inventory | 2,000 | ||||
Desired total units | 7,000 | ||||
Less desired units of beginning finished goods inventory | |||||
Total production units | 4,500 |
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