Chrystal Telecom has budgeted the sales of its innovative mobile p

Chrystal
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 Jun 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.

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