Question: Wellstone Company estimates that 2011 unit sales will be 18,000 in quarter 1, 24,000 in quarter 2, and 30,000 in quarter 3, at a unit

Wellstone Company estimates that 2011 unit sales will be 18,000 in quarter 1, 24,000 in quarter 2, and 30,000 in quarter 3, at a unit selling price of $20. Management desires to have ending finished goods inventory equal to 10% of the next quarter’s expected unit sales. Prepare a production budget by quarter for the first 6 months of 2011.

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