Answer:
Pasadena Candle Inc.
Pasadena Candle Inc.
Production Budget
For the Year Ending December 31
Total units available:
Project sales                    800,000
Desired ending inventory 20,000  820,000
Beginning inventory                          35,000
Total units to be produced             785,000
Explanation:
a) Data and Calculations:
Projected sales of candles for the year = 800,000  candles
January 1 inventory = 35,000 units
Desired December 31 inventory = 20,000 units
Units available for sale = 820,000 (800,000 + 20,000)
Production for the year = 785,000 (820,000 - 35,000)