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Down Under Products, Limited, of Australia has budgeted sales of its popular boomerang for the next four months as follows: The company is now in
Down Under Products, Limited, of Australia has budgeted sales of its popular boomerang for the next four months as follows: The company is now in the process of preparing a production budget for the second quartet. Past experience has shown that end-ofmonth inventory levels must equat 20% of the following mpnth's unit sales. The inventory at the end of March was 18.000 units. Required: Prepare a production budget by month and in total, for the second quarter. Fout grams of musk oll are requlred for each bottle of Mink Caress, a very poputar perfume made by a small company in western Siberia. The cost of the musk oil is $1.70 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for. the first quarter of Year 3 ; rhe inventory of musk oll ot the end of a quarter must be equal to 20% of thi following quarter's production needs. Some 73,600 grams of musk oil will be on hand to start the first quarter of Year 2. Required: Prepare a direct materiats budget for musk oil, by quarter and in total, for Year 2
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