Answer:
See explanation section
Explanation:
Blue Wave Corporation
Production Budget
For the months of September, October, and November
September October November
Budgeted sales 3,600 4,900 6,000
Add: Ending finished
goods Inventory 2,940 3,600 5,040
Inventory available
for sale 6,540 8,500 11,040
Less: Beginning finished
goods Inventory (2,700) (2,940) (3,600)
Budgeted finished
goods production 3,840 5,560 7,440
Total production = 16,840 units
Note: Current months ending finished goods is the next months beginning finished goods.
Ending Inventory for September = 4,900 × 60% = 2,940
October = 6,000 × 60% = 3,600
November = 8,400 × 60% = 5,040
