Exercise 9-2 Production Budget [LO3]
Crystal Telecom has budgeted the sales of its innovative mobile phone over the next four months as follows:
Sales in Units
The company is now in the process of preparing a production budget for the third quarter. Past experience has shown that end-of-month inventories of finished goods must equal 10% of the next month's sales. The inventory at the end of June was 3,000 units.
Show the number of units to be produced each month and for the quarter in total.
Response discusses the steps to compute the production Budget