1.Use the following data for MSP Company to prepare a production budget for the fourth quarter of 2012.
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October
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November
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December
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Quarter
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Budgeted unit sales
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2,000
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2,200
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2,400
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6,600
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Sale price per unit
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$20
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$20
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$20
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$20
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Total sales revenue
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$40,000
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$44,000
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$48,000
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$132,000
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Management desires an ending finished goods inventory in each month equal to 20% of the next month%u2019s budgeted sales.The desired ending inventory for December is 520 units.The company expects to start the quarter with 360 units in finished goods inventory.
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October
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November
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December
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Quarter
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Budgeted unit sales
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Add desired ending inventory
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Total units needed
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Less beginning inventory
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Required production
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