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Prepare a production budget for the third quarter

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Reference no: EM131817767

Question - 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.

Reference no: EM131817767

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