Business, 20.12.2019 23:31 crummar01

Sales (units) 510 590 540 630 the company wants to end each month with ending finished goods inventory equal to 30% of next month's forecasted sales. finished goods inventory on april 1 is 153 units. assume july's budgeted production is 540 units. in addition, each finished unit requires six pounds (lbs.) of raw materials and the company wants to end each month with raw materials inventory equal to 40% of next month’s production needs. beginning raw materials inventory for april was 1,282 pounds. assume direct materials cost $5 per pound. prepare a production budget for the months of april, may, and june.

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