Down Under Products, Limited of Australia has budgeted sales of its popular boomerang for the next four months as follows: Unit Sales April 78,000 85,000 118,000 May June July 94,000 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 15,600 units. Required: Prepare a production budget by month and in total, for the second quarter. Budgeted unit sales Add: Desired units of ending finished goods inventory Total needs Required production in units Down Under Products, Limited Production Budget April May June Quarter 78,000 85,000 118,000 17,000 95,000 85,000 118,000 0 95,000 85,000 118,000 0