Answer:
$18,250
Explanation:
Preparation of a production budget by quarters for the first 6 months of 2020.
Paige Company
Production Budget For the six months ended December 31, 2020
Expected unit sales 11,100 12,300
Add: Desired ending finished goods
2,706 2,706
(22%*$12,300)
Total required units 13,806 15,006
(11,100+2,706) (12,300+2,706)
Less: Beginning finished goods inventory
2,442 2,706
(22%*11,100) (22%*12,300)
Required production units 8,656 9,594
(11,100-2,442) (12,300+2,706)
Six Months: $18,250
(8,656 +9,594)
Therefore the production budget by quarters for the first 6 months of 2020 will be $18,250
