Paige Company estimates that unit sales will be 10,800 in quarter 1, 12,800 in quarter 2, 14,400 in quarter 3, and 18,300 in quarter 4. Management desires to have an ending finished goods inventory equal to 24% of the next quarter's expected unit sales.

Prepare a production budget by quarters for the first 6 months of 2020.

Total = 27,056 units

Explanation:

Giving the following information:

Paige Company estimates that unit sales will be 10,800 in quarter 1, 12,800 in quarter 2, 14,400 in quarter 3, and 18,300 in quarter 4. Management desires to have an ending finished goods inventory equal to 24% of the next quarter's expected unit sales.

Production Budget:

1st quarter = 10,800

2nd quarter = 12,800

Ending inventory = (14,400*0.24) = 3,456

Total = 27,056 units