Zahn Company budgets sales of 280 units in May and 540 units in June. Each month's ending inventory should be 25% of the next month's sales. The April 30 ending finished goods inventory is 70 units. Prepare the production budget for May. ZAHN COMPANY Production Budget Budgeted sales units Add: Desired ending inventory Desired ending inventory May 280 135 units Total required units 415 Add: Beginning inventory units (70) Units to produce 345