Side Spin has begun production of a new lightweight tennis racket. For the coming year, it predicts that it will sell 125,000 units in the first quarter, 156,250 units in the second quarter, 175,000 units in the third quarter, and 187,500 in the fourth quarter. It also expects that it will sell 187,500 units in the first quarter of the following year. The company's inventory policy is to retain 20% of next quarter's sales on hand as ending inventory. Opening inventory is 25,000 units.
Required. Prepare in good form a production budget for Side Spin's coming year.

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The Answer of Side Spin has begun production of a new lightweight tennis racket. For the coming year, it predicts that it will sell 125,000 units in the first quarter, 156,250 units in the second quarter, 175,000 units in the third quarter, and 187,500 in the fourth quarter. It also expects that it will sell 187,500 units in the first quarter of the following year. The company's inventory policy is to retain 20% of next quarter's sales on hand as ending inventory. Opening inventory is 25,000 units.
Required. Prepare in good form a production budget for Side Spin's coming year.

Side Spin Has Begun Production of a New Lightweight Tennis