Electro Company manufactures transmissions for electric cars. Management reports ending finished goods inventory for the first quarter at units. The following unit sales are budgeted during the rest of the year: second quarter, units; third quarter, units, and fourth quarter, units. Company policy calls for the ending finished goods inventory of a quarter to equal of the next quarter's budgeted unit sales.
Prepare a production budget for both the second and third quarters that shows the number of transmissions to manufacture.
tableELECTRO COMPANY,Production Budget,Second Quarter,Third QuarterNext period budgeted sales units,,Desired ending inventory units,,Total required units,,Units to produce,,
