(Solved): Exercise 20-4 (Algo) Manufacturing: Production budget LO P1 Blue Wave Company budgets the following ...

Exercise 20-4 (Algo) Manufacturing: Production budget LO P1 Blue Wave Company budgets the following unit sales for the next four months: September, 3,500 units; October, 4,300 units; November, 6,000 units; and December, 8,400 units. The company's policy is to maintain finished goods inventory equal to

of the next month's unit sales. At the end of August, the company had 2,450 finished units in inventory. Prepare a production budget for each of the months of September, October, and November. \table[[BLUE WAVE COMPANY],[Production Budget],[,September,October,November],[Budgeted sales units,3,500,,4,300,,6,000,],[Add: Desired ending inventory,,,,,,],[Next period budgeted sales units,,,,,,],[Ratio of inventory to future sales,70,%,70,%,70,%],[Desired ending inventory units,,,,,,],[Total required units,,,,,,],[Less: Beginning inventory units,,,,,,],[Units to produce,,,,,,]]