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Down Under Products, Limited of Australia has budgeted sales of its popular boomerang for the next four months as follows: April May Unit Sales
Down Under Products, Limited of Australia has budgeted sales of its popular boomerang for the next four months as follows: April May Unit Sales 66,000 80,000 105,000 June July 88,000 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 13,200 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 Less: Units of beginning finished goods inventory Required production in units Down Under Products, Limited Production Budget April May June Quarter 66,000 80,000 106,000 252,000 8,000 10,600 74,000 90,600 106,000 252,000 8,000 10,600 74,000 82,600 95,400 252,000
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