Case: The Bainder Company has budgeted its popular Binder sales for the next four months as follows:

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Question:

Case:
The Bainder Company has budgeted its popular Binder sales for the next four months as follows:

Sales in Units
April 120,000
May 140,000
June 160,000
July 65,000

The company is currently in the process of preparing a production budget for the second quarter. Then experience shows that the end-of-month inventory level must equal 10% of the next month's sales. Inventories at the end of March are 10,000 units.

Question:
Prepare a production budget for the second quarter; in your budget, indicate the number of units to be produced each month and for the quarter total.