chapter 8 q 1

Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows:

	Unit Sales
April		82,000
May		90,000
June		122,000
July		96,000

The company is now in the process of preparing a production budget for the second quarter. Past experience has shown that end-of-month inventory levels must equal 15% of the following months unit sales. The inventory at the end of March was 12,300 units.

Required:

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