Electro Company manufactures an innovative automobiletransmission for electric cars. Management predicts that endingfinished goods inventory for the first quarter will be 275,400units. The following unit sales of the transmissions are expectedduring the rest of the year: second quarter, 459,000 units; thirdquarter, 493,000 units; and fourth quarter, 208,500 units. Companypolicy calls for the ending finished goods inventory of a quarterto equal 60% of the next quarter's budgeted sales.
Prepare a production budget for both the second and third quartersthat shows the number of transmissions to manufacture.
