Ch$.8-$ Chapter Problems

$1$

Down Under Products' sales budget for the next four months is as follows:

$\backslash$table$[[10,,$Unit Sales$],[$points$,$April,$80,000],[,$May,$90,000],[,$June,$120,000],[,$July,$95,000]]$

The company wants its ending inventory levels to equal $10\%$ of the following month's unit sales. The inventory at the end of March was $8,000$ units.

Required:

Prepare a production budget, by month and in total, for the second quarter.

$\backslash$table$[[$Down Under Products, Limited$],[$Production Budget$],[$Budgeted unit sales,April,May,June,Quarter$],[,,,,],[$Total needs,,,,$],[,,,,],[$Required production in units,,,,$]]$