Selva Inc. makes keyboards for tablets. In the first four months of the coming year, Selva expects the following unit sales:
January ............... 41,000
February .............. 38,000
March ................. 50,000
April................... 51,000
Selva's policy is to have 25 percent of next month's sales in ending inventory. On January 1, it is expected that there will be 6,700 units on hand.
Required:
Prepare a production budget for the first quarter of the year. Show the number of keyboards that should be produced each month as well as for the quarter in total.