Crystal Telecom has budgeted the sales of its innovative mobile phone over the next four months as follows:

Question details:

Crystal Telecom has budgeted the sales of its innovative mobile phone over the next four months as follows:


 

Sales in Units
  July   30,000  
  August   45,000  
  September   60,000  
  October   50,000  


The company is now in the process of preparing a production budget for the third quarter. Past experience has shown that end-of-month finished goods inventories must equal 10% of the next month’s sales. The inventory at the end of June was 3,000 units.


Required:

Prepare a production budget for the third quarter showing the number of units to be produced each month and for the quarter in total. (Do not round intermediate calculations. Input all amounts as positive values.)

 

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Answer

Crystal Telecom has budgeted the sales of its innovative mobile phone over the next four months as follows:

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