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so people this is it the first budget you would be required to make is production budget based upon the sales budget sales but it would invariably be given to you on your exam like in our example in this arrangement 10 000 12 and 15 and 16 these are the budgeted sales units for the four months multiplied by the budgeted sales price 150 per unit this is the sales budget in dollar that will be given to you the problem starts when we have to set up our production budget there is a specific format for this and you need to be very careful when we read the information because based upon the information given we have to take the policy for stock and then do the computations so look at this our production budget starts from planned sales what is planned sales 10 000 units 12 15 and 16. this is the starting point of your production budget your sales budget is the input for your production budget so you will see these same numbers 10 12 15 16 in this row and if i ink this row you would see same