Down Under Products, Limited, of Australia has budgeted sales of Its popular boomerang for the next four months as follows: April May June July Unit Sales 60,000 80,000 100,000 85,000 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 20% of the following month's unit sales. The Inventory at the end of March was 12,000 units. Required: Prepare a production budget by month and in total, the second quarter. Budgeted unit sales Add: Desired units of ending finished goods inventory Total needs Less: Units of beginning finished goods inventory Required production in units Answer is complete and correct. Down Under Products, Limited, Production Budget April 60,000 18,000 76,000 12,000 64.000 May 80,000 20.000 100.000 16.000 84,000 June 100,000 17,000 117.000 20,000 97.000 Quarter 240,000 17,000 257,000 12.000 245,000

The company is now in the process of preparing a production budget for the second quarter. Past experience has shown that end-ofmonth inventory leveis must equal 20% of the following month's unit sales. The inventory at the end of March was 12,000 units. Requlred: Prepare a production budget by month and in total, for the second quarter