April May June July Sales units 670 750 700 790 Solution PRO

April May June July Sales (units) 670 750 700 790

Solution

PRODUCTION BUDGET APRIL MAY JUNE QUARTER JULY Budgeted Sales Units 670 750 700 2,120 790 Add: Desired Ending Finished inventory 225 210 237 237 Total Needs 895 960 937 2,357 Less: Beginning Finished Inventory 201 225 210 201 Required Production in units 694 735 727 2,156 RAW MATERIAL PURCHASE BUDGET APRIL MAY JUNE QUARTER JULY Budgeted Production units 694 735 727 2,156 700 Raw material required per unit 4 4 4 4 4 Total production needs 2,776 2,940 2,908 8,624 2,800 Add: Desired Ending Inventory 882 872 840 840 Total needs 3,658 3,812 3,748 9,464 Less: Beginning Inventory 833 882 872 833 Purchase Units 2,825 2,930 2,876 8,631 Cost price per unit 6.00 6.00 6.00 6.00 Budgeted Purchase in $ 16,950 17,582 17,256 51,786