Heather Products expects the following sales of its single product:  UnitsMay15,000June16,000July17,500August18,000September19,000Heather desires an ending finished goods inventory to be equal to 20% of the next month's sales needs. Actual May 1 inventory will be 3,300 units.  Required:Prepare a production budget for Heather for as many months as is possible.

What will be an ideal response?



?MayJuneJulyAugustSept
Sales15,00016,00017,50018,00019,000
+ Ending Inv+ 3,200+ 3,500+ 3,600+ 3,800(unknown)
- Beginning Inv- 3,300- 3,200- 3,500- 3,600-3,800
Production14,90016,30017,60018,200(unknown)

Budgeted production units = Budgeted unit sales + Budgeted ending finished goods inventory ? Budgeted beginning finished goods inventory

Business

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