Crystal Telecom has budgeted the sales of its innovative mobile phone over the next four months as follows:
The company is now in the process of preparing a production budget for the third quarter. Past experience has shown that end-of-month finished goods inventories must equal 10% of the next month"s sales. The inventory at the end of June was 3,000 units.
|
Sales in Units
|
|
July
|
30,000
|
|
August
|
45,000
|
|
September
|
60,000
|
|
October
|
50,000
|
Required:
Prepare a production budget for the third quarter showing the number of units to be produced each month and for the quarter in total.