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Exercise 20-10 Manufacturing: Production budget LO P1 Blue Wave Co. predicts the following unit sales for...

Exercise 20-10 Manufacturing: Production budget LO P1

Blue Wave Co. predicts the following unit sales for the coming four months: September, 3,000 units; October, 4,200 units; November, 6,400 units; and December, 8,300 units. The company’s policy is to maintain finished goods inventory equal to 60% of the next month’s sales. At the end of August, the company had 2,400 finished units on hand.

Prepare a production budget for each of the months of September, October, and November.

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