I have to create a production budget: 1. I don\'t know if what I already answere

Question

I have to create a production budget:

1. I don't know if what I already answered is correct (verification on that would be great)

2. I'm not sure how to solve the rest of it

If anyone does answer this, can you please write our the formulas as well so I can understand how you answered it.

Thanks a million!

INPUT AREA: UNIT SALES VALUES: FROM "FORECAST" WORKSHEET      DESIRED FIN. GOODS ENDING INVENTORY IS 5% OF THE NEXT MONTH'S FORECASTED UNIT SALES. (Enter as a %)      SEPTEMBER FINISHED GOODS ENDING INVENTORY 305 units OUTPUT AREA:                      PRODUCTION BUDGET                     FOURTH QUARTER, 2018 OCTOBER NOVEMBER DECEMBER JANUARY - - - - UNIT SALES FORECAST 33,228 37,557 10,584 9,504 ADD: DESIRED FINISHED GOODS ENDING INV. 1,661 1,878 529 - - - TOTAL NEEDED 34,889 39,435 11,113 LESS: FINISHED GOODS BEGINNING INVENTORY REQUIRED PRODUCTION

Explanation / Answer

Ending inventory is calculated at 5% of next month's unit sales. For example:

Ending inventory for October = 5% of unit sales for November = 5% x 37557 = 1877.85 = 1878

For November = 5% x 10584 = 529.2 = 529

For December = 5% x 9504 = 475.2 = 475

Beginning inventory for each month is the ending inventory of preceeding month.

PRODUCTION BUDGET FOURTH QUARTER, 2018 OCTOBER NOVEMBER DECEMBER JANUARY Unit sales forecast 33228 37557 10584 9504 Add: Desired finished goods ending inventory 1878 529 475 Total needed 35106 38086 11059 Less: Finished goods beginning inventory 305 1878 529 Required production 34801 36208 10530

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