Create a production budget for the third quarter

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Reference no: EM131265067

Chrystal Telecom has budgeted the sales of its innovative mobile phone over the next four months as follows:
                                                                                  Sales in Units
July.................................................................................30,000

August............................................................................45,000

September....................................................................60,000

October.........................................................................50,000

The company is now in the process of preparing a production budget for the third quarter. Past experience has shown that end-of-month finished goods inventories must equal 10% of the next month's sales. The inventory at the end of Jun was 3,000 units.

Required:

Prepare a production budget for the third quarter showing the number of units to be produced each month and for the quarter in total.

Reference no: EM131265067

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