Atlantic Surf manufactures surfboards. The company's budgeted sales units for the next three months is shown...

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Atlantic Surf manufactures surfboards. The company's budgeted sales units for the next three months is shown below. Company policy is to maintain finished goods inventory equal (in units) to 40% of the next month's unit sales. As of June 30, the company has 1,800 finished surfboards in inventory. Budgeted sales units July 4,500 August September 7,400 3,800 Prepare the production budget for the months of July and August. ATLANTIC SURF Production Budget July August 4,500 7,400 Budgeted sales units Add: Desired ending inventory Next period budgeted sales units 7,400 3,800 Ratio of inventory to future sales 40% 40% Desired ending inventory units 2,960 1,520 Total required units 7,460 8,920 Less: Beginning inventory units Units to be produced Atlantic Surf manufactures surfboards. The company's budgeted sales units for the next three months is shown below. Company policy is to maintain finished goods inventory equal (in units) to 40% of the next month's unit sales. As of June 30, the company has 1,800 finished surfboards in inventory. Budgeted sales units July 4,500 August September 7,400 3,800 Prepare the production budget for the months of July and August. ATLANTIC SURF Production Budget July August 4,500 7,400 Budgeted sales units Add: Desired ending inventory Next period budgeted sales units 7,400 3,800 Ratio of inventory to future sales 40% 40% Desired ending inventory units 2,960 1,520 Total required units 7,460 8,920 Less: Beginning inventory units Units to be produced

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