Patrick Inc. makes industrial solvents. In the first 4 months ofthe coming year, Patrick expects the following unit sales:
| January | 41,000 |
| February | 38,000 |
| March | 50,000 |
| April | 51,000 |
Patrick's policy is to have 23% of next month's sales in endinginventory. On January 1, it is expected that there will be 4,500drums of solvent on hand.
Required:
Prepare a production budget for the first quarter of the year.Show the number of drums that should be produced each month as wellas for the quarter in total. If required, round your answers to thenearest whole unit.
| Patrick Inc. |
| Production Budget |
| For the Coming Quarter |
| January | February | March | 1st Quarter Total |
| Sales | | | | |
| Desired ending inventory | | | | |
| Total needs | | | | |
| Less: Beginning inventory | | | | |
| Units to be produced | | | | |
