Crystal Telecom has budgeted the sales of its innovative mobile phone over the next four months as follows:

Crystal Telecom has budgeted the sales of its innovative mobile phone over the next four months as follows:

	Sales in Units
July		30,000
August		45,000
September		60,000
October		50,000

The company is now in the process of preparing a production budget for the third quarter. Past experience has shown that end-of-month finished goods inventories must equal 10% of the next month’s sales. The inventory at the end of June was 3,000 units.

Required:

Prepare a production budget for the third quarter showing the number of units to be produced each month and for the quarter in total. (Do not round intermediate calculations. Input all amounts as positive values.)

Crystal Telecom Production Budget
	July	August	September	Quarter
Budgeted sales in units	30,000	45,000	60,000	135,000
Add : Ending inventory	4,500	6,000	5,000	5,000
Total needs	34,500	51,000	65,000	140,000
Deduct : Beginning inventory	3,000	4,500	6,000	3,000
Required production in units	31,500	46,500	59,000	137,000