Production Budget

Windsor Lock Company's controller is preparing a production budget for the year. The company's policy is to maintain a finished goods inventory equal to one-half of the following month's sales. Sales of 5,000 locks are budgeted for April. Complete the monthly production budget for the first quarter:

	January		February		March
Sales in units	5,000		4,000		6,000
Add desired units of ending finished goods inventory	2,000
Desired total units	7,000
Less desired units of beginning finished goods inventory
Total production units	4,500