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.