Question

I have to create a production budget:

1. I don't know if what I already answered is correct (verification on that would be great)

2. I'm not sure how to solve the rest of it

If anyone does answer this, can you please write our the formulas as well so I can understand how you answered it.

Thanks a million!

INPUT AREA:
UNIT SALES VALUES: FROM "FORECAST" WORKSHEET
DESIRED FIN. GOODS ENDING INVENTORY IS	5%	OF THE NEXT MONTH'S FORECASTED UNIT SALES.
	(Enter as a %)
SEPTEMBER FINISHED GOODS ENDING INVENTORY	305	units
OUTPUT AREA:
	PRODUCTION BUDGET
	FOURTH QUARTER, 2018
	OCTOBER	NOVEMBER	DECEMBER	JANUARY
	-	-	-	-
UNIT SALES FORECAST	33,228	37,557	10,584	9,504
ADD: DESIRED FINISHED GOODS ENDING INV.	1,661	1,878	529
	-	-	-
TOTAL NEEDED	34,889	39,435	11,113
LESS: FINISHED GOODS BEGINNING INVENTORY
REQUIRED PRODUCTION

Answer 1

PRODUCTION BUDGET
FOURTH QUARTER, 2018
	OCTOBER	NOVEMBER	DECEMBER	JANUARY
Unit sales forecast	33228	37557	10584	9504
Add: Desired finished goods ending inventory	1878	529	475
Total needed	35106	38086	11059
Less: Finished goods beginning inventory	305	1878	529
Required production	34801	36208	10530

Ending inventory is calculated at 5% of next month's unit sales. For example:

Ending inventory for October = 5% of unit sales for November = 5% x 37557 = 1877.85 = 1878

For November = 5% x 10584 = 529.2 = 529

For December = 5% x 9504 = 475.2 = 475

Beginning inventory for each month is the ending inventory of preceeding month.