Complete the monthly production budget for the first quarter

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Problem

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



Reference no: EM131795751

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