Grass Cutters Manufacturing produces lawn mowers. On March 31, Grass Cutters Manufacturing had 120 lawn mowers in inventory. The company has a policy that the ending inventory in any month must be 10% of the following month's expected sales. Grass Cutters Manufacturing expects to sell the following number of lawn mowers in each of next four months:
April | 1,200 lawn mowers |
May | 2,450 lawn mowers |
June | 1,700 lawn mowers |
July | 1,200 lawn mowers |
Required:
Prepare a production budget for the second quarter, with a column for each month and for the quarter.