Mansion Corp. sells its product for $500 per unit. Budgeted sales units for the next three months are: March, 5,000 ; April, 6,250; May, 7,750. The inventory on March 1st is 2,500 units. The company wants to maintain 50% of the next month’s sales in inventory. Calculate the budgeted production for the second month of the quarter. Solution Beginning inventory(0.5*6250) 3125 units Add:production(balance)(6250+3875-3125) 7000 units. Less:ending inventory(0.5*7750) (3875) Sales 6250 units.