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Preparing a Production Budget

Patrick Inc. makes industrial solvents. In the first $4$ months of the coming year, Patrick expects the following unit sales:

January $41,000$

February $38,000$

March $50,000$

April $51,000$

Patrick's policy is to have $17\%$ of next month's sales in ending inventory. On January $1,$ it is expected that there will be $4,350$ drums of solvent on hand.

Required:

Prepare a production budget for the first quarter of the year. Show the number of drums that should be produced each month as well as for the quarter in total. If required, round your answers to the nearest whole unit.

Patrick Inc.

Production Budget

For the Coming Quarter

January February March $1$st Quarter Total

Sales fill in the blank $1$

fill in the blank $2$

fill in the blank $3$

fill in the blank $4$

Desired ending inventory fill in the blank $5$

fill in the blank $6$

fill in the blank $7$

fill in the blank $8$

Total needs fill in the blank $9$

fill in the blank $10$

fill in the blank $11$

fill in the blank $12$

Less: Beginning inventory fill in the blank $13$

fill in the blank $14$

fill in the blank $15$

fill in the blank $16$

Units to be produced fill in the blank $17$

fill in the blank $18$

fill in the blank $19$

fill in the blank $20$