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Production Budget

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
July 30,000
August 45,000
September 60,000
October 50,000
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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.

Required:
Show the number of units to be produced each month and for the quarter in total.

Required Production
July

August

September

Quarter

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Hint 1

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Attachments

Solution Summary

Response discusses the steps to compute the production Budget

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