Blue Wave Company budgets the following unit sales for the next four months: September, 4,000 units; October, 5,000 units; November, 7,000 units; and December, 7,600 units. The company's policy is to maintain finished goods inventory equal to 60% of the next month's unit sales. At the end of August, the company had 2,400 finished units in inventory. Prepare a production budget for each of the months of September, October, and November. Next period budgeted sales units Desired ending inventory units Total required units BLUE WAVE COMPANY Production Budget September Units to produce % October % November %

Blue Wave Company budgets the following unit sales for the next four months: September, 4,000 units; October, 5,000 units; November, 7,000 units; and December, 7,600 units. The company's policy is to maintain finished goods inventory equal to 60% of the next month's unit sales. At the end of August, the company had 2,400 finished units in inventory. Prepare a production budget for each of the months of September, October, and November. Next period budgeted sales units Desired ending inventory units Total required units BLUE WAVE COMPANY Production Budget September Units to produce % October % November %

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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