Production Budget
Isobel Law, the controller for Aberdeen Lock Company, is preparing a production budget for the year. The company’s policy is to maintain a finished goods inventory equal to one-half of the following month’s sales. Sales of 7,000 locks are budgeted for April. Complete the monthly production budget for the first quarter:
| January | February | March | |
| Sales in units | 5,000 | 4,000 | 6,000 |
| Add desired units of ending | |||
| finished goods inventory | 2,000 | ? | ? |
| Desired total units | 7,000 | ||
| Less desired units of beginning | |||
| finished goods inventory | ? | ? | ? |
| Total production units | 4,500 | ? | ? |
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