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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
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 5000 locks are budgeted for April. Complete the monthly production budget for the first quarter:
January February March
Sales in Units 5000 4000 6000
Add Desired units of ending finished goods inventory 2000 ? ?
Desired total units 7000 ? ?
Less desired units of beginning finished goods inventory ? ? ?
Total production units 4500 ? ?
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