Valentino Company had the following budgeted sales over the last 4 months of the year: Sales in Units October 10,000 November 25,000 December 35,000 January 46,000 The company is now in the process of preparing a production budget for the forth quarter. Past experience has shown that end of the month inventories of finished good must equal 20% of the next month’s sales. The inventory at the end of September is 2,000 units
For each of the following months calculate the number of units that need to be produced: show computations and related details
a. October
b. November
c. December