Production Budget
Isobel Law, the controller for Aberdeen Lock Company, is preparing a production budget for the year. The company’s policy is to maintain a finished goods inventory equal to one-half of the following month’s sales. Sales of 7,000 locks are budgeted for April. Complete the monthly production budget for the first quarter:
|
January |
February |
March |
|
|
Sales in units |
5,000 |
4,000 |
6,000 |
|
Add desired units of ending |
|||
|
finished goods inventory |
2,000 |
? |
? |
|
Desired total units |
7,000 |
||
|
Less desired units of beginning |
|||
|
finished goods inventory |
? |
? |
? |
|
Total production units |
4,500 |
? |
? |