Chrystal Telecom has budgeted the sales of its innovative mobile phone over t

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.