Blue Wave Company budgets the following unit sales for the next four months: September, 3,100 units;...

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Blue Wave Company budgets the following unit sales for the next four months: September, 3,100 units; October, 4,200 units; November, 6,400 units; and December, 8,100 units. The company's policy is to maintain finished goods inventory equal to 60% of the next month's unit sales. At the end of August, the company had 1,860 finished units in inventory. Prepare a production budget for each of the months of September, October, and November. BLUE WAVE COMPANY Production Budget September October November Next period budgeted sales units % % % Desired ending inventory units Total required units Units to produce Blue Wave Company budgets the following unit sales for the next four months: September, 3,100 units; October, 4,200 units; November, 6,400 units; and December, 8,100 units. The company's policy is to maintain finished goods inventory equal to 60% of the next month's unit sales. At the end of August, the company had 1,860 finished units in inventory. Prepare a production budget for each of the months of September, October, and November. BLUE WAVE COMPANY Production Budget September October November Next period budgeted sales units % % % Desired ending inventory units Total required units Units to produce

Answer rating: 100% (QA)

To prepare a production budget we need to calculate the required units for each month based on the g... View the full answer