Prepare a production budget for the third quarter

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Reference no: EM13327399

Crystal Telecom has budgeted the sales of its innovative mobile phone over the next four months as follows:

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 June was 3,000 units.


Sales in Units

July

30,000

August

45,000

September

60,000

October

50,000

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: EM13327399

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