What will be the production budget of third quarter

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Reference no: EM132542030

January : 20,000 units

February: 35,000 units

March: 35,000 units

April: 45,000 units

May: 60,000 units

June: 75,000 units

July: 75,000 units

August: 80,000 units

September: 65,000 units

October: 50,000 units

November: 25,000 units

December: 15,000 units

(A). The company wants ending inventory to be equal to 25% of the following month's estimated sales in units.

(B). The company purchases 60% of its inventory in the month prior to the month of sale, keeping it in the ending inventory, and 40% in the month of sale. Payment for inventory in made in the month following the purchase.

Question 1: What will be the production budget of third quarter

Reference no: EM132542030

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