Question: Avery Picture Frames, Inc. is preparing its master budget for the 3 rd quarter ending June 30. The following sales units were forecasted for this

Avery Picture Frames, Inc. is preparing its master budget for the 3rd quarter ending June 30. The following sales units were forecasted for this 3rd quarter. In addition to the budgets sales in units for these months, the forecasted sales in units for July were 55,000 units.

April

May

June

Sales in units

62,000

59,000

60,000

The company wants to end each month with ending finished goods inventory equal to 20% of next months forecasted sales in units. Ending inventory from March is 17,800 units.

Prepare the production budget for April, May and June. Round each units up to the nearest whole unit (no decimals).

April

May

June

Budgeted sales in units

Add: Desired ending inventory

Required units

Less: Ending inventory from prior period

Units to produce

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