Bredder Supply Corporation Manufactures and Sells Cotton Gauze

Essay

Bredder Supply Corporation manufactures and sells cotton gauze. Expected sales of gauze (in boxes) for upcoming months are as follows: Management likes to maintain a finished goods inventory equal to 20% of the next month's estimated sales.
Required:
Prepare the company's production budget for the third quarter of this year (the months of July, August and September). Include a column for each month and a total column for the entire quarter.